(December 10, 2025) -- PwC and the Urban Land Institute (ULI) have released Emerging Trends in Real Estate® 2026, the 47th edition of the industry’s leading annual forecast. The report outlines the major forces reshaping real estate as the sector navigates economic uncertainty, demographic change, and rapid technological advancement across the U.S. and Canada.
Drawing on insights from more than 1,700 investors, developers, lenders, and advisors, the report pinpoints the opportunities, risks, and structural shifts expected to guide decision-making in the year ahead.
“Recent years have pushed the industry to sharpen its focus and adapt quickly,” said Andrew Alperstein, partner in PwC’s U.S. real estate practice. “In today’s environment, capital is flowing into high-growth segments. From the acceleration of AI infrastructure to the rising need for senior housing, success in 2026 will belong to those who pair speed with strategic, data-driven vision.”
ULI Global CEO Angela Cain echoed this momentum: “Technology is increasingly powering the U.S. economy, and real estate is beginning to fully harness that energy. Interest remains strong across high-growth asset classes, including data centers, senior housing, and self-storage. Coupled with expectations of further interest-rate cuts, the industry is approaching 2026 with cautious optimism.”
Top 10 Markets to Watch in 2026
- Dallas–Fort Worth
- Jersey City
- Miami
- Brooklyn
- Houston
- Nashville
- Northern New Jersey
- Tampa–St. Petersburg
- Manhattan
- Phoenix
Sector Outlook: Where Investors See Opportunity Next
Data Centers: Power Constraints Shape the Future
Demand for data centers is outpacing supply as AI and cloud computing fuel unprecedented absorption. With national vacancy below 2% and most new capacity leased before delivery, limited power availability is becoming the defining factor in site selection. Markets with reliable energy access are emerging as the next hubs of digital-infrastructure investment.
Senior Housing: A Historic Wave Begins
The first baby boomers will turn 80 in 2026, marking a demographic milestone that is expected to reshape demand for senior housing. With limited new supply, rising occupancy, and new care and lifestyle models—from “independent living lite” communities to tech-enabled wellness facilities—the sector is entering a period of transformational growth.
Self-Storage: From Utility to Lifestyle Asset
Self-storage continues to capture demand driven by housing constraints, mobility, and lifestyle shifts. The report highlights the rise of storage condos, a hybrid investment product serving individuals and small businesses, blending personal-use space with industrial functionality.
Student Housing: Growth Meets Uncertainty
After a robust rebound in 2024, student housing is facing a more complex landscape. Enrollment gains, simplified financial aid, and international student growth have propelled strong occupancy and rent performance. Still, demographic shifts, visa delays, and construction costs signal a period of mixed outlook and heightened scrutiny.
Office Market: A Split-Level Recovery
The office sector is experiencing a deepening divide. Trophy and amenity-rich Class A buildings in major metros are commanding record rents, while older and less central assets continue to struggle with elevated vacancies and declining valuations. Recovery will remain selective and uneven, shaped heavily by asset quality and location.
A Real Estate Industry Entering Its Next Chapter
Emerging Trends in Real Estate® 2026 presents a sector in transition—neither reverting to pre-pandemic norms nor standing still. Technology is increasingly embedded in the built environment, demographic realities are reshaping demand, and capital is targeting sectors capable of long-term resilience.
With financing costs still elevated and uncertainty lingering, the report concludes that the most successful players in 2026 will be those who pair agility, innovation, and strategic insight.
The full report, including rankings, data tables, and interactive market analyses, is available through PwC and the Urban Land Institute.