Wall Street’s presence in the housing market expanded after the subprime mortgage crisis exploded in 2007. But institutional investors have never owned more than a small slice of the overall housing market: around 2% to 3%.
Wealth Transfer
Americans with a net worth of more than $5 million are expected to pass down about $17.3 trillion over the next decade.
Multifamily Rents
The rate of multifamily rent growth was flat in 2025 compared to the year before. Though rent growth strengthened in the first part of the year, those gains were erased by weaker performance at the end of the year.
Home Values
53% of U.S. homes have lost value in the last year, the most since 2012. Southern and Western cities saw steepest declines; Northeast remained stable. Even so, home prices are projected to rise 4% in 2026 despite increased inventory.
REIT Returns
The FTSE Nareit All Equity REIT Index chalked up a total return of about 2.3% for 2025, well below the 17.9% of the S&P 500.
Fed Outlook
Fed officials now see rates falling from their current range of 3.5% to 3.75% by a quarter of a point this year, which would leave rates roughly at “neutral,” neither restricting nor stimulating growth.
The Permian
The number of operating rigs in the Permian Basin is down 14% over the past year.
Mortgage Rates
Mortgage rates drop to lowest level in nearly 3 years as Trump orders buying of $200 billion in mortgage bonds.
2025 Economy
In 2025, job creation sputtered, wage growth cooled and the unemployment rate rose. Much of the job creation that took place in 2025 was concentrated in two sectors: education and health services.
Home Prices
Home prices are up more than 50% nationally since 2019, and the median existing-home price in November rose to $409,200. Home buying overall has dwindled over the past three years due to high home prices and the surge in mortgage rates.