According to Realtor.com’s 2026 Housing Forecast, experts are forecasting that home prices will grow by 2.2% next year, while there will be an 8.9% increase in existing home inventory.
The report noted that buyer conditions should improve as mortgage rates drop, incomes rise and more houses continue to enter the market. It’s expected that the average 30-year mortgage rate will be around 6.3% as mortgage rates finally come down. Home sales are expected to grow by 1.7% or 4.13 million.
Affordability should improve a little bit, as it’s expected that the monthly payment required to purchase a typical home will drop to 29.3% of median income, dropping to below 30% for the first time since 2022.
While the report expects the national housing market to remain in a balanced phase in 2026, with an average of 4.6 months of supply, there are no guarantees in real estate. If you want to make money from the real estate market in 2026, you may want to pay attention to what the top 1% are doing.
GOBankingRates consulted with real estate experts to determine the real estate investment strategies of the 1% next year and how readers can implement them.
They’re Diversifying Their Real Estate Portfolios
“[One-percent] investors are not simply looking at big cities, they have been moving to cheaper, smaller and faster-growing cities in the Southeast and Midwestern areas of the United States where the price-to-rent ratios are more favorable,” said Ben Mizes, a licensed real estate agent and the co-founder of Clever Offers. He noted that the top investors are looking to purchase in the undervalued secondary markets.
As a regular investor, you can try this strategy by exploring different options for building a real estate portfolio. You can get creative and consider building an accessory dwelling unit (ADU) on your property as a short-term rental. You can also tap into your network to see if any of your friends want to purchase something together.
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They’re Looking for Profitable Markets
Mizes noted that top investors identify markets using advanced modeling to determine where profitable markets are going to be.
“Everyday investors can also identify these markets by using Roofstock, Google Trends, PropStream to see where demand is growing,” he explained.
If you want to make money in real estate in 2026, you’re going to have to spend more time on research by reviewing different markets until you find one that you believe has the potential to go up in value.
They’re Looking for Landlords Who Want To Exit
“When mom-and-pop landlords start to leave the investment due to regulatory controls and tighter profit margins, the 1% investors are able to buy these properties and usually have a lot more financing options that are available to them,” Mizes elaborated.
As a regular investor, you can look for similar opportunities by reviewing properties in your community. There could be a storefront or home property manager who’s looking to move on.
They’re Looking for the Best Risk-Adjusted Returns
“The 1% will continue to do next year what they have always done, find the best risk-adjusted returns that they possibly can,” remarked Robert Varghese, the head of investments for Groundfloor. “As it relates to real estate, with rates coming down, you may see an uptick in real estate purchases.”
The top 1% investors are looking for the best possible returns, so this means that they may increase real estate investments with interest rates dropping, so that they can get a better deal. Lower rates may make certain investments more lucrative for the top 1% who didn’t want to get involved in the market when rates were sky-high.
As a regular investor, you can apply this logic by looking for a real estate investment that you can make with a lower rate, which would mean smaller monthly payments and increased affordability.
They Will Invest as Limited Partners
Varghese believes that the top 1% of real estate investors will participate as limited partners (LPs) in various equity deals, whether in industrial (warehouses, data centers), hospitality or multi-family properties.
The primary role of an LP is to provide capital towards a real estate deal, and they’re often involved in commercial investments. They also don’t want to worry about daily operations or other details, since they’re more of a silent partner through funding. Since the top 1% may have enough commitments, they may not want to get too hands-on with their real estate investments in 2026.
Varghese noted that readers can access similar equity investments through certain online platforms, but should take the time to analyze the specifics of each deal. Some platforms let you get started as a silent partner, such as real estate crowdfunding options and other programs that don’t require millions of dollars to get your foot in the door.
As always, you want to ensure you know what you’re getting into, since real estate investments can be capital-intensive and tie up a decent amount of your savings.
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This article originally appeared on GOBankingRates.com: 5 Things the 1% Are Doing With Their Real Estate Investments in 2026
