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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 26 November 2025 C O V E R S T O R Y These three issues—supply, the resulting affordability crunch, and the rising cost to simply own and maintain a home—are the structural headwinds that will largely define the housing market for 2026. Q: You've done work on the single-family rental market. How do you view the market evolving in 2026 in relation to homeownership? Does it become a more significant part of the ecosystem? BOESEL: The single-family rental (SFR) market should remain a signifi- cant, structural component of the hous- ing ecosystem in 2026. This growth is primarily driven by the nation's ongoing affordability crisis, as high home prices and mortgage rates keep a large pool of would-be buyers out of homeownership. These households often seek the size and quality of a single-family dwelling but are forced to be renters by necessity. While the pandemic-era surges in sin- gle-family rent growth have stabilized and will continue to normalize toward pre-pandemic averages, demand will remain robust. Consequently, the SFR segment is increasingly functioning as a long-term housing solution, rather than a temporary stop before buying. For investors, this translates into sustained demand and a solid, long-term asset class. Q: What do you see as the biggest barrier for Gen Z and younger homebuyers when it comes to meaningfully approaching homebuying in 2026, and might the obstacle shift from "can't afford" to something else? BOESEL: Affordability remains the primary barrier for Gen Z as they consider entering the housing market in 2026. Home prices remain high, and high rents continue to erode their ability to save for a down payment, which makes the path to homeown- ership more difficult. However, Gen Z has shown a willingness to relocate to more affordable markets when prices in high-demand areas are out of reach. It is also important to recognize that while entry-level home prices may appear ac- cessible, they can obscure the true cost of ownership. Expenses such as main- tenance and homeowners' insurance often become the next financial hurdle once the purchase is complete. Q: If you were advising our readers (mortgage professionals) for strategic focus in 2026, what key metric(s) would you tell them to watch and why? BOESEL: For mortgage professionals in 2026, the strategic pivot is simple: shift your risk focus to escrow shock. The real pressure point is no longer high debt, but the sudden liquidity strain caused by surging insurance and property tax costs. Our research clearly shows delin- quency spikes are concentrated in areas with the sharpest rises in non-mortgage costs. Owners with large amounts of home equity would be able to use some of their equity to absorb increases in payments, but those who bought more recently, and those who used low-down- payment loans, may be at a higher risk for delinquency. While the pandemic- era surges in single- family rent growth have stabilized and will continue to normalize toward pre- pandemic averages, demand will remain robust. " —Molly Boesel, Senior Principal Economist, Cotality