What to Expect in Real Estate as We Head Into 2026

By Brocks Consulting & Real Estate Services

As 2025 winds down, the Nassau County real estate market continues to show strength across residential and rental sectors, while commercial segments shift in response to interest rates, inventory levels, and investor behavior. Backed by data from the National Association of REALTORS® (NAR), Long Island MLS trends, and national mortgage reporting, here’s what buyers, sellers, landlords, and investors need to know heading into 2026.

Current Market Snapshot (Late 2025)

Nassau County remains fundamentally competitive:

• Median home prices in Nassau continue to hold in the low-to-mid $800Ks, supported by tight supply.
• Inventory levels are still below pre-pandemic norms, maintaining a mild seller’s market.
• Mortgage rates have eased to around 6.2%, down from prior highs — a promising trend for 2026 affordability.

What NAR Data Tells Us

NAR’s most recent research highlights several national trends that directly influence Nassau County:

1. Investor and International Buyer Activity Is Rebounding

Foreign and domestic investors are re-entering the market, especially in areas with stable rents and limited supply. Nassau’s proximity to NYC continues to make it a prime target.

2. Buyers Are More Selective — But Still Active

With borrowing costs still above pre-2020 levels, buyers are prioritizing turnkey homes and properties with strong long-term value. This supports pricing stability even as overall activity normalizes.

Mortgage Rates & Affordability

Rates averaging around 6.2% heading into December 2025 represent a meaningful improvement. As the Federal Reserve signals easing through 2026, buyers could gain additional purchasing power.

Over the next six months, expect:

• Gradual declines in mortgage rates
• Slight improvements in affordability
• Stronger demand for renovated or well-located homes
• More competitive multiple-offer situations if rates fall below 6%

Rental Market: Residential & Commercial Insights

Residential Rentals

Demand for rentals in Nassau remains high, especially:

• Single-family homes
• Updated multifamily units
• Properties near transit and major highways

Low vacancy rates continue to support strong rent values countywide.

Commercial Rentals

Commercial markets are more mixed:

• Industrial: Slight softening due to increased vacancy in some pockets
• Retail & Office: Stronger performance in areas with high foot traffic and stable tenant mixes
• Warehouse/flex space: Holding value but requiring more competitive pricing than in 2021–2023

This creates select opportunities for investors with longer-term horizons.

Investor Outlook: Where the Opportunities Are

1. Single-Family & Multifamily Rentals

Cash-flowing rentals remain attractive, especially in communities with strong schools and transportation access.

2. Value-Add Properties

Fix-and-flip inventory is limited, but renovated homes continue commanding top-dollar returns.

3. Niche Commercial Assets

Industrial and mixed-use buildings near major corridors can present solid long-term upside — but underwriting should remain conservative as vacancy fluctuates.

Six-Month Forecast: December 2025 → May 2026

Based on current trendlines:

Mortgage Rates

Likely to remain in the mid-5% to low-6% range if Federal Reserve cuts proceed as expected.

Home Prices & Sales Activity

• Prices should remain stable or see modest appreciation in low-inventory areas.
• Sales volume is expected to increase as rate relief unlocks pent-up buyer demand.

Residential Rentals

Expect rents to hold steady or increase slightly, especially for renovated or well-located homes.

Commercial Sector

A mixed picture:

• Industrial may soften slightly
• Retail/office will be hyper-localized and tenant-driven
• Medical, mixed-use, and service-based retail remain strong

Investor Behavior

More investors are expected to return, but with greater selectivity and focus on return fundamentals.

What This Means for You

For Buyers

• Get pre-approved early to leverage rate dips
• Move quickly on well-positioned homes
• Consider rate buydowns, adjustable-rate options, or down payment assistance programs

For Sellers

• Proper pricing and preparation remain essential
• Homes in top condition still attract strong offers
• High-demand neighborhoods retain market strength even with rate volatility

For Investors & Landlords

• Prioritize to maximize cash-flow 
• Model conservative rent growth and vacancy
• Focus on neighborhoods with low supply and strong tenant demand

How Brocks Consulting & Real Estate Services Can Help

Brocks Consulting provides Nassau, Suffolk and Queens County clients with:

• Local market reports
• Buyer and seller strategy development
• Investments
• Rental & landlord advisory
• Marketing and listing management

Feel free to contact me with any questions or if you have  properties in any condition to sell  at 516-385-1880.