Real estate in the US in 2026: what people are buying, how much it costs, and where demand is shifting

The US residential real estate market is entering a phase of stability, with demand shifting to more affordable regions and housing formats. Find out what people are buying in the US right now, how much it costs, and what expenses to consider before investing

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After several turbulent years, the US residential real estate market is entering a phase of relative stability. Demand remains strong, but buyer behavior has changed significantly: instead of impulsive decisions, buyers are now making detailed budget calculations and assessing profitability and long-term costs. finance.ua learned about current trends from experts, including Tetyana Ternavska, a lawyer specializing in real estate and construction at Prikhodko & Partners.

According to her, “the market looks cautious but healthy,” and almost every deal today starts with a calculation of taxes, insurance, and actual monthly expenses.

Current trends in the US residential real estate market

Activity is supported by both domestic demand and interest from foreigners, including Ukrainians. High mortgage rates are already perceived as the new reality — buyers have adapted to the conditions. The focus of calculations:

● future mortgage payments;

● property tax;

● insurance;

● HOA payments (in the case of townhouses or condominiums).

This approach reduces the number of risky transactions and improves the quality of decisions made.

How much does housing cost in the US: budgets by state

The difference in cost between states is significant, and even the area matters. Approximate budgets:

● California — from $750,000 (average budget);

● New York — from $650,000–700,000;

● Texas — $450,000–500,000 on average.

For example, in Los Angeles, you can buy a small house or condominium for $600,000–700,000. In Florida, you can get a full-fledged house with land for a similar budget.

What types of housing are currently in demand

Experts name single-family homes and townhouses as the favorites. They are especially popular among families who previously focused exclusively on large cities. For a budget of $450,000–500,000, instead of a condominium in a metropolis, people are increasingly choosing a house in the suburbs of Texas or Florida — more space and lower monthly expenses.

Condominiums remain relevant, but they are more often purchased for rent or short-term investments. In expensive metropolitan areas, this is still the most realistic way to enter the market.

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Where demand is shifting: regional characteristics

The trend in recent years has been a shift in demand from expensive metropolitan centers to more affordable states. The most active markets are:

● Texas;

● Florida;

● Arizona;

● North Carolina.

Properties priced at $400,000–450,000 in these states sell faster than in traditionally expensive regions. New York and California remain prestigious and liquid, but deals there are more complicated, both financially and legally.

Primary and secondary markets: hidden costs

The difference between new builds and secondary housing is significant. New builds are more expensive but offer more predictable costs. In the secondary market, after purchase, you often have to invest an additional $30,000–50,000 in repairs or bringing the property into compliance with insurance company requirements. The main mistake is not to factor these costs in advance, which significantly changes the financial model of the transaction.

Investing in US real estate: what works today

The market no longer rewards quick attempts at resale. According to experts, those who focus on the following will win:

● stable rental income;

● positive cash flow;

● realistic cap rate;

● predictable payback period.

Houses and townhouses in regions with active population migration are considered the most viable.

Taxes and typical mistakes of foreign buyers

Foreigners often underestimate:

● property tax;

● insurance costs;

● HOA payments.

Typical mistakes include:

● purchasing without analyzing the location;

● focusing only on a “good price”;

● ignoring legal nuances;

● overestimating the possibility of a quick resale.

For Ukrainians considering purchasing real estate in the US, it is also important to consider migration aspects: residence status, tax residency, income reporting requirements. Before investing, it is advisable to consult with an immigration lawyer. The Visit Ukraine platform offers the services of specialized lawyers who can help you assess legal risks and choose the optimal residency format.

We remind you! Housing costs and salary levels in Germany vary significantly depending on the city. Read how many years it takes to save up for an apartment in Munich, Berlin, or Dortmund, as well as where housing is most affordable for buyers.

Photo: pixabay

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