US Real Estate Sector NAICS 531

May 23, 2026 - Foreclosures Reach a Six-Year High

• The Wall Street Journal reports that according to property data firm Attom, US foreclosure filings rose to nearly 119,000 in the first quarter, up 26% from a year earlier, reaching the highest level since early 2020, as rising homeownership costs strain some borrowers. Analysts say the increase reflects a return to pre-pandemic norms, not widespread distress, because many owners still hold low mortgage rates and strong equity. However, higher property taxes, insurance premiums, homeowners association fees, and resumed student-loan payments are pressuring household budgets. Recent buyers are especially vulnerable due to higher rates and weaker price growth. Some homeowners are also feeling the pinch of resumed student loan payments, and rising credit card and car loan delinquencies.
• The New York Times reports that, according to real estate investment services firm Flock Homes, about 7.2 million single-family homes are sitting vacant across the US. Many older homeowners choose not to sell because steep tax liabilities, including capital gains taxes, make it cheaper to hold properties than to list them. Homes inherited by heirs are often valued on a stepped-up basis at current market values, nearly eliminating capital gains taxes, which further discourages older owners from selling. These dynamics could distort housing supply data and complicate valuation models in the real estate appraisal industry, as comparable sales become scarcer and market activity appears tighter than underlying inventory suggests. The trend is especially pronounced in major metro areas, where retirees' unoccupied paid-off homes remain off the market despite ongoing housing shortages.

• The apartment sector remained the most liquid segment of commercial real estate in Q1 2026, with sales rising 1% year over year to $32 billion, according to MSCI Real Assets data shared with Multifamily Dive. Individual asset sales increased 3% to $27.6 billion, while portfolio deals fell 13% to $4.4 billion. Prices were flat in Q1 2026, marking the first time since late 2022 when prices didn't decline. Activity varied by region: the six leading major metros saw a 29% increase to $10.1 billion, while non-major metros declined 9% to $21.9 billion. In an analysis of the MSCI data, JPMorgan noted that rising Treasury yields could pressure underwriting, as higher borrowing costs reduce investor flexibility, though geopolitical factors had minimal impact on Q1 results.
• Commercial real estate firms are grappling with how to adopt artificial intelligence while protecting proprietary data, as executives weigh competitive risks against potential gains, according to Bisnow. Industry leaders say fears over data security, confusion about tools, and lack of trust have slowed adoption, even as a First American Data & Analytics and DealGround survey showed that 66% of professionals use AI weekly. An IBM study showed that more than one-third of employees admit to sharing sensitive information without approval. Experts warn that “shadow AI,” or unauthorized employee use, increases exposure, especially with remote work. While a survey by property tech firm Keyway suggests that nearly half of firms are piloting AI and many plan to boost spending by over 20%, only 9% have implemented it at scale, and just 8% are fully data-ready. Companies are responding by building internal tools, tightening contracts, and training staff, but challenges around integration, security, and workflow transformation remain significant.