Housing Market 2026 Forecast: Wharton Professor's Real Estate Trends to Watch
Episode Description
ABOUT THE EPISODE In an interview on our This Week in Business podcast, Susan Wachter, Albert Sussman Professor of Real Estate at the Wharton School, recaps what took place in 2025 and offers her 2026 housing market forecast.
Topics and questions covered: 00:00 - Introduction 00:43 - Analyzing the current residential market 01:39 - How mortgage rates are impacting housing 03:01 - Is the idea of a 50-year mortgage viable? 04:03 - The commercial real estate landscape 05:08 - Areas of focus for the commercial market's recovery 07:19 - What to watch in 2026
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Brief Summary
Susan Walker discusses the housing market's challenges and potential recovery in residential and commercial real estate.
Key points
- Sidelined Buyers in Residential Market. The residential market is facing challenges as buyers remain hesitant due to high interest rates and uncertainties. 'The residential market is being driven by the buyers who are sidelined.'
- Viability of a 50-Year Mortgage. Susan Walker discusses the impracticality of a 50-year mortgage proposed by President Trump. 'A 50-year mortgage? It's not viable.'
- Commercial Real Estate Recovery. Despite challenges, commercial real estate is on a slow path to recovery. 'Commercial real estate's on the mend.'
- Optimism for In-Person Economy. Susan expresses cautious optimism for the future of in-person work in cities. 'The long run, I'm somewhat optimistic about the in-person economy.'
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Episode highlights
- Sidelined Buyers in Residential MarketThe residential market is facing challenges as buyers remain hesitant due to high interest rates and uncertainties. 'The residential market is being driven by the buyers who are sidelined.'0:48Dec 30, 2025
- Viability of a 50-Year MortgageSusan Walker discusses the impracticality of a 50-year mortgage proposed by President Trump. 'A 50-year mortgage? It's not viable.'3:14Dec 30, 2025
- Commercial Real Estate RecoveryDespite challenges, commercial real estate is on a slow path to recovery. 'Commercial real estate's on the mend.'5:01Dec 30, 2025
- Optimism for In-Person EconomySusan expresses cautious optimism for the future of in-person work in cities. 'The long run, I'm somewhat optimistic about the in-person economy.'6:34Dec 30, 2025
