Housing Investor Sentiment Hits All-Time Low
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- RCN Capital/CJ Patrick Company Investor Sentiment Index fell for the second straight quarter to an all-time low, with only 26% of respondents saying market conditions are better than a year ago — down from 35% in Q1 — and 45% saying conditions have worsened, the highest "worse" share in the survey's history.
- The Iran war drove mortgage rates sharply higher after a late-February low, with rates now at their highest level in over a year, according to the report.
- More than half of the 300+ investors surveyed called high financing costs "one of the biggest problems," and three-quarters said they do not expect rate relief anytime soon, with some expecting further increases.
- Real estate investors purchased 23% fewer homes in Q1 2026 than in Q4 2025 and Q1 2025; 32% of respondents plan to buy no properties at all this year, and only 9% plan to buy more than they did a year ago.
- The 21st Century ROAD to Housing Act now generally prohibits investors with 350+ single-family homes from acquiring additional ones, though the vast majority of those surveyed are small- to mid-sized investors who rely on bridge loans, special investor loans, and conventional 30-year fixed-rate loans.
- More than 60% of respondents expect home prices to rise over the next six months, up from just under 52% in the prior survey, raising acquisition costs even as rental rates face downward pressure.
Why it matters: With 32% of surveyed investors planning to buy zero properties this year and purchases already down 23% quarter-over-quarter, reduced investor demand could shrink the supply of renovated single-family homes for sale — but the same survey shows 60%+ expect prices to keep rising, meaning acquisition costs for those still willing to bid will stay elevated.
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