Ten problems facing the real estate industry in 2026, according to young leaders
Business Insider published the views of ten young industry leaders on the main challenges facing the real estate market in 2026, from AI and data to the shortage of affordable housing.
Gurban Gurbanzadeh4 min read
Business Insider has published material on ten main challenges facing the real estate sector in 2026. The list is based on the views of participants in the annual Rising Stars of Real Estate ranking of young industry leaders.
According to the authors of the material, the market in 2026 looks far from normal. High interest rates and home prices have pushed many potential buyers out of the market, including in some markets that were previously the most active. New taxes on expensive real estate and general economic uncertainty have led prospective buyers to weigh whether to buy or invest in property in their own cities, or to look for options in other places, including abroad.
The role of agents and data
Jo Ben-Zvi, founder of the real estate company Ben-Zvi Group, believes technology has made information more accessible, and that some buyers and sellers think a deal can be done without an agent. In his words, agents remain important, but existing knowledge is no longer sufficient.
Agents can no longer rely only on access to properties or information. They must demonstrate real value through expertise, creativity, negotiation skills and the ability to solve problems.
Sahar Chordia, vice president of strategy and analytics at Cortland, believes the value of data will grow. In his words, the sector is still fragmented and makes insufficient use of the large volume of data that creates physical assets.
Real estate is by nature a business built around physical assets, but most of the sector's data remains fragmented and underused. AI will play an important role, but the advantage will go to organisations that can effectively collect, structure and analyse information about their portfolios.
AI, data centres and affordable housing
Michael Dillon, vice president of Prime Finance, said that data centres and energy-related facilities could change which types of real estate win and which lose. In his words, it is still unclear how an AI-driven economy will affect different asset types over the long term.
Alex Dobosh, assistant to the director of HKS Real Estate Advisors, considers AI to be both the main challenge and one of the biggest opportunities for the sector. In his words, AI is not a reason for agents to panic, and the firm is already using the technology.
Our main challenge is also our newest advantage, and that is AI. It may be hard to see how it is changing our world. We use it every day to find business and help clients, and also because we do not want to fall behind.
Lindy Lu, founder of Foyer, a service that describes itself as "401(k) for homeownership", expects 2027 to bring renewed problems with housing affordability. In her words, the sector needs to change fundamentally in order to better support young Americans and other buyers at lower costs.
Kathryn Magret, strategic director for real estate at the lobbying firm Kasirer, describes the shortage of affordable housing as a serious problem, particularly in New York. In her words, demand is growing in all five boroughs of the city, but the cost of land, construction, labour and financing makes building projects with a significant share of affordable apartments extremely difficult.
Developers cannot close this gap in one go. They need stimulus programmes that reflect real costs, faster approval procedures and further zoning reform. If we want more affordable housing, we need to make its construction possible.
Manhattan's office market
Cordelia Meseroux, vice president of asset management at the investment and asset management firm Harbor Group International, said that fluctuations in interest rates have affected commercial real estate prices in Manhattan. However, the city's rental market has never been stronger. The problem is that there is not enough high-quality office space.
There seems to be no limit to how much tenants are ready to pay for the space they want. The main challenge in New York is that the market is effectively running out of Class A space.
Due to the shortage of Class A buildings, according to Meseroux, deal timelines will remain under pressure. "Deal timing will slow precisely because of the shortage of available space," she said.
Source: businessinsider.com
