MBA 2026 forecast: Slow growth amid inflation, rate hikes
Summary
Economic growth is expected to slow in 2026, with mortgage rates staying within a narrow range and home prices remaining largely flat. This could impact your STR business by potentially affecting booking rates and demand, so be prepared for a potentially slower market.
Key Insights
- •GDP growth in 2025 is projected to be 1.6%, with growth staying in a narrow range of 1.5% to 1.7% from 2026-2028. This could limit housing market growth.
- •Mortgage rates are expected to stay in a narrow range of 6% to 6.5% in the coming years. This could affect the housing market, potentially impacting your STR business.
- •National home prices are expected to be essentially flat over the forecast horizon, with growth slowing to about 1% by the end of 2025 and turning slightly negative in late 2026.
Action Items
- ✓Monitor your local market and occupancy rates. Be prepared to adjust your pricing strategy if demand softens.Effort: lowImpact: medium
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