6 Predictions for 2026 That Could Reshape the Economy and Housing Market

BiggerPockets Blog
Published: December 19, 2025
Pricing & Profitability

Summary

This article discusses economic predictions for 2026, including the potential impact of AI on wages and the housing market. Hosts should pay attention to how AI may influence service costs and demand, and consider how changes in interest rates and economic sentiment might affect real estate values.

Key Insights

  • The article suggests that interest rates may fall in 2026 due to the expectation of declining inflation, which could positively impact real estate markets, including potentially the STR market.
  • The article predicts that AI could be deflationary, particularly on services, potentially leading to lower wage growth and impacting costs within various industries. The suppression of hiring is a key effect.

Action Items

  • Monitor economic indicators, particularly inflation and interest rates, as they will directly affect the value of real estate and could influence your pricing strategy and profitability.
    Effort: low
    Impact: medium
  • Evaluate expenses, particularly labor and services, to see if AI tools can decrease the cost of your hosting operations and keep profits high.
    Effort: medium
    Impact: medium

Common Mistakes

  • Failing to account for economic changes, such as the potential impact of AI and shifts in interest rates, can lead to inaccurate pricing and financial projections, hurting profitability.

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