By Ryan Kushner | Multi Family Dive
Local government leaders resoundingly list housing as their number one concern of the day, but activity around housing in 2026 is “subdued,” according to Daniel McCue, lead author of the Harvard Joint Center for Housing Studies’ 2026 State of the Nation’s Housing report.
“Construction is down, home sales are flat and cost burdens are up,” McCue said ahead of a panel discussion following the report’s release Wednesday.
Here are seven takeaways from the report.
1. Economic conditions are weakening housing demand
Economic headwinds are showing up in this year’s report as a lack of demand, McCue said. Consumer confidence, job growth and household growth have all tumbled. As a result, new housing construction has softened, with single-family construction dipping 7%. Multifamily home construction, while stronger than anticipated, “failed to overcome the sharp decline in 2024,” according to the report. “Uncertainty and slowing job markets also affect residential mobility, another driver of housing demand that is also falling,” the report states.
2. Vacancy rates are on the rise
Rising inventory has also contributed to slower housing construction. After hitting historic lows in 2022 and 2023, national homeowner and renter vacancy rates are on the rise, reaching 1.1% for homeowners and 7.3% for renters in the first quarter of 2026. Both rates remain below historic averages, however, and indicate “at least several hundred thousand” units are still needed to meet demand, according to the report. The trends are also inconsistent across the country and reflect regional housing production levels, with the South seeing the largest vacancy rate rebound and the Midwest scoring the smallest.
