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Forbes 2026: Key Housing Trends to Watch

  //house-home.news-articles.net/content/2026/01/07/forbes-2026-key-housing-trends-to-watch.html
  Published in House and Home on Wednesday, January 7th 2026 at 13:12 GMT by Forbes

Navigating the Next Decade: A Summary of Forbes' 2026 Homebuilding & Rental Housing Predictions

Brad Hunter’s Forbes article, “Ten Predictions for the Homebuilding and Rental Housing Business” (published January 7, 2026), paints a picture of significant, and often disruptive, changes coming to the housing market over the next few years. The piece isn’t a simple forecast of rising or falling prices, but rather a deep dive into evolving demographics, technological advancements, and shifting consumer preferences that will reshape how homes are built, bought, and rented. Here's a detailed summary of Hunter's ten predictions, supplemented by insights from linked resources within the article:

1. The "Missing Middle" Will Become Increasingly Important: Hunter predicts a surge in demand for "missing middle housing" – housing types that fall between single-family homes and large apartment complexes. This includes townhouses, duplexes, triplexes, and courtyard apartments. This demand is driven by a combination of affordability concerns (single-family homes remain out of reach for many) and demographic shifts, specifically the increasing number of single-person households and smaller families. The article links to a National Association of REALTORS® report further detailing the benefits of missing middle housing in boosting local economies and creating more diverse housing options.

2. Build-to-Rent (BTR) Will Continue to Explode: BTR isn’t a new concept, but Hunter expects its growth to accelerate. These aren’t just traditional apartment complexes; they are typically single-family homes built specifically for renters, often with amenities similar to those found in master-planned communities. The driving force is a growing segment of the population who want to rent – not because they have to, but as a lifestyle choice. They prioritize flexibility, low-maintenance living, and access to amenities. The linked Green Street article highlights the strong performance of publicly traded BTR companies, showing institutional investment is already heavily backing this trend.

3. Generational Cohorts Will Drive Demand for Different Housing: Hunter forecasts distinct housing preferences among different age groups. Baby Boomers are downsizing and seeking age-restricted communities with healthcare access. Gen X is entering their peak earning years and seeking move-up homes, while Millennials and Gen Z, saddled with debt and preferring urban lifestyles, will continue to drive demand for rental units, especially in walkable, transit-oriented areas. Understanding these generational preferences will be crucial for builders and developers.

4. Construction Tech Will Revolutionize Building Practices: The article emphasizes that advancements in construction technology (contech) will dramatically change how homes are built. This includes 3D printing, modular construction, robotics, and AI-powered design tools. These technologies promise to reduce construction costs, shorten build times, and improve quality. While initial investment is high, Hunter argues the long-term benefits are undeniable. The piece links to a Construction Dive article discussing the growing adoption of offsite construction (like modular builds), which addresses labor shortages and improves efficiency.

5. Small-Scale, Local Developers Will Gain Traction: Hunter anticipates a shift away from the dominance of large, national homebuilders. He believes smaller, local developers who can adapt quickly to changing market conditions and cater to specific community needs will thrive. They are better positioned to focus on infill development and the “missing middle” housing types, filling gaps left by larger builders focused on high-volume, standardized construction.

6. Sustainability Will Be Non-Negotiable: Consumers are increasingly environmentally conscious, and sustainability is no longer a niche market. Hunter predicts that energy efficiency, water conservation, and the use of sustainable materials will become standard expectations for new homes. Builders who fail to prioritize sustainability risk losing market share. This isn’t just about "greenwashing" – increasingly stringent building codes and consumer demand will drive genuine sustainable practices.

7. The Rise of "Amenitized" Rentals: Renters are no longer simply looking for a place to live; they want experiences. Hunter forecasts a growing demand for rentals with robust amenity packages – co-working spaces, fitness centers, pet care facilities, community gardens, and social events. These amenities justify higher rents and foster a sense of community.

8. The Suburban Transformation Will Continue: While urban living remains popular, the pandemic accelerated a trend towards suburban and exurban living. Hunter believes this shift will continue, but with a twist. Future suburbs won't be car-dependent sprawls; they will be mixed-use communities with walkable neighborhoods, access to public transit, and a focus on community building.

9. Data-Driven Home Design Will Become the Norm: AI and data analytics will play an increasingly important role in home design. Builders will use data to understand buyer preferences, optimize floor plans, and personalize home features. This will lead to more efficient and appealing homes that meet the specific needs of target demographics.

10. Housing Affordability Will Remain the Biggest Challenge: Despite advancements in construction technology and shifts in housing preferences, Hunter acknowledges that housing affordability will remain a significant issue. Supply shortages, rising land costs, and increasing construction costs will continue to put pressure on prices. He suggests that innovative financing models and government policies will be crucial to address this challenge.

Overall, Hunter's predictions highlight a complex and evolving housing landscape. It’s a market demanding innovation, adaptation, and a deeper understanding of consumer needs. The future of homebuilding and rental housing isn’t just about constructing buildings, but about creating communities and lifestyles that resonate with a diverse and changing population. The article argues that success will belong to those builders and developers who embrace technology, prioritize sustainability, and focus on delivering value to a wide range of renters and homebuyers.