SAN FRANCISCO (November 5, 2025) — Today, PwC and the Urban Land Institute (ULI) released Emerging Trends in Real Estate® 2026, the 47th edition of the annual industry outlook that reveals and breaks down the key trends that investors, developers and city leaders need to know. This year’s report explores how the industry is adapting amid economic change, demographic shifts and rapid advances in technology.

Drawing on insights from more than 1,700 leading real estate investors, developers, lenders and advisors across the U.S. and Canada, the report identifies key opportunities, risks and market shifts that will shape the industry in the coming year.

“The past few years have tested the industry’s ability to pivot,” said Andrew Alperstein, a partner with PwC’s U.S. real estate practice. “In today’s environment, we’re seeing a renewed focus on core fundamentals and deploying capital into high-growth areas. From the rapid evolution of AI infrastructure to the growing demand for senior housing, the opportunities in 2026 will favor those who combine speed, data-driven insight and a long-term strategic vision.”

“Technology continues to play a significant role in driving the U.S. economy, and it’s exciting to see the real estate sector beginning to integrate those advances to harness that power more effectively,” said Angela Cain, ULI Global CEO. “We continue to see interest from high-growth asset classes, including data centers, senior housing, and self-storage. Combined with the expectation of additional interest rate cuts, there’s a cautious optimism in the industry as we head into 2026.”

Top 10 Markets to Watch in 2026:

1. Dallas-Fort Worth
2. Jersey City
3. Miami
4. Brooklyn
5. Houston
6. Nashville
7. Northern New Jersey
8. Tampa-St. Petersburg
9. Manhattan
10. Phoenix

Shifting Sectors, Emerging Opportunities

Beyond geography, the report examines how sector dynamics are evolving as investors adapt to new market circumstances. Several property sectors show potential for growth, innovation and long-term resilience:

Data Centers Power Ahead Amid Constraints

Demand for data centers continues to surge, driven by rapid growth in artificial intelligence and cloud computing, even as power shortages and supply bottlenecks limit expansion. With national vacancy below 2% and most facilities pre-leased before completion, constrained capacity is keeping rents elevated and development competitive. Growth is increasingly concentrated in markets with reliable energy access, underscoring how power availability is defining the next phase of digital infrastructure investment.

Boomers Bring the Next Big Wave

With the first baby boomers turning 80 in 2026, demand for senior housing is approaching a historic inflection point. Limited new supply, evolving care models and shifting consumer preferences are driving record-high occupancy levels. Developers are diversifying offerings, from active adult “independent living lite” communities to wellness-focused and tech-enabled facilities.

Self-storage Transitions from Utility to Lifestyle and Investment Hybrid

Self-storage continues to evolve into a hybrid asset class with broader appeal. Demand is being propelled by housing constraints and lifestyle trends favoring flexibility. A new subsegment, storage condos, is emerging as a unique investment opportunity for individuals and small businesses, blending industrial and personal-use space in innovative ways.

Complex Outlook for Student Housing Demand

Following a strong rebound in 2024, the student housing sector is now navigating a more complex outlook. Simplified federal financial aid, a record high school graduating class, and robust international enrollment in U.S. higher education combined to deliver the strongest gains in years. Student housing mirrored that growth, with near-record absorption, high occupancy, and steady rent increases. Yet, as demographic headwinds, ongoing visa delays, and rising construction costs emerge, the sector now enters a complex and uncertain phase.

Offices Reprice Amid a Divided Market

The office sector is stabilizing as top-tier buildings in major markets capture record rents, even as overall valuations remain far below pre-pandemic peaks. Lower-quality and less central properties continue to face elevated vacancies, reflecting a widening divide between trophy assets and struggling stock. This bifurcation, by both building class and geography, suggests that recovery will be selective and uneven across the sector.

Together, these sectors illustrate a broader trend: real estate’s future growth will be powered by innovation, adaptation, efficiency and strategic reinvention.

A New Era for Real Estate

The Emerging Trends in Real Estate® 2026 report uncovers an industry that is neither standing still nor returning to old norms. It is reshaping itself for a new era as technology integrates across the built environment and demographic shifts create new demand patterns. With economic uncertainty and higher financing costs continuing to persist, the most successful players will be those who combine insight with agility.

The full report, including data tables, rankings and in-depth market analyses, is available through PwC and the Urban Land Institute. Explore the complete findings and interactive experience here.

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About the Urban Land Institute

The Urban Land Institute is a non-profit education and research institute supported by its members. Its mission is to shape the future of the built environment for transformative impact in communities worldwide. Established in 1936, the institute has more than 48,000 members worldwide representing all aspects of land use and development disciplines. For more information on ULI, please visit uli.org, or follow us on Facebook, LinkedIn, and Instagram.

About PwC

At PwC, our purpose is to build trust in society and solve important problems. We’re a network of firms in 151 countries with over 320,000 people who are committed to delivering quality in assurance, advisory, and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Content on this page has been prepared for general information only and is not intended to be relied upon as accounting, tax or professional advice. Please reach out to your advisors for specific advice.