Housing Market Loses Steam, “National Buyer’s Market” Likely in 2026

BiggerPockets Blog
Published: October 14, 2025
Pricing & Profitability

Summary

The housing market is softening, potentially leading to a buyer's market in 2026, which could impact STR owners by increasing inventory and offering negotiation power. The government shutdown has caused the National Flood Insurance Program to lapse, potentially delaying or canceling closings in coastal areas and impacting hosts in those locations. Consider checking if you can assign your flood insurance to buyers if you are affected by the shutdown.

Key Insights

  • Home prices nationally are up 1.7% year over year, showing signs of softening, with month-over-month price drops for five consecutive months.
  • New listings of US homes rose 2.3% year over year, the biggest increase in over three months, while pending sales fell 1.3% from a year ago.
  • The government shutdown has caused the National Flood Insurance Program to lapse, potentially delaying 1400 closings a day, particularly affecting coastal areas.

Action Items

  • Consider assigning your existing flood insurance to a buyer if the government shutdown affects your ability to close on a property sale.
    Effort: medium
    Impact: medium

Common Mistakes

  • Failing to address the lapse in the National Flood Insurance Program could lead to delays or cancellations in property sales, especially in coastal areas.

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