Real Estate Investor Sentiment Drops 14 Points to 87 as Iran War Fears Hit Housing Outlook
Updated
Updated · Weekly Real Estate News · May 6
Real Estate Investor Sentiment Drops 14 Points to 87 as Iran War Fears Hit Housing Outlook
4 articles · Updated · Weekly Real Estate News · May 6
RCN Capital’s investor sentiment index fell 14 points to 87 in the first quarter, the lowest reading in its 11-quarter history and the first drop across all four tracked components.
Nearly 60% of surveyed investors said the war in Iran would hurt the housing market and their business, reversing the positive 2026 outlook they expressed in the prior quarter.
Market views deteriorated sharply: 36% said conditions were better than a year ago, down from 45%, while those saying conditions were worse rose to 36% from 25%.
Future expectations also weakened, with 32% expecting improvement versus 44% previously and 32% expecting conditions to worsen, up from 19%.
Insurance remained a major operational constraint—almost 75% said it affected investment decisions and more than 53% said insurance issues had cost them a deal.
For investors, which poses the greater threat: unpredictable war-driven market swings or the escalating crisis in property insurance costs?
As the Iran war drives global inflation, are higher interest rates and a housing market downturn now inevitable for the US?
If banning big investors won't fix housing affordability, what are the real solutions to the nation's 5-million-home shortage?