Global Property Market Update: December 2025

Regional disruptions highlighted how local factors can reshape housing markets. In and around Washington, D.C., federal sector layoffs and a temporary government shutdown contributed to a sharp rise in housing supply. Listings increased significantly, and homes took longer to sell, offering a clear example of how employment trends and policy decisions can affect property markets in major capitals.

Despite softer price growth, housing wealth in the U.S. reached record levels in 2025, driven by gains accumulated earlier in the decade. Homeowners increasingly turned to home equity lending, pushing activity to its highest level since the global financial crisis. This trend mirrors a broader pattern seen in other mature markets, where owners are leveraging existing equity rather than refinancing at higher rates.

Mortgage performance remained relatively stable overall, though early signs of strain emerged among more vulnerable borrowers. Delinquency rates edged higher in certain loan segments, underscoring the impact of elevated living costs and tighter financial conditions.

Investor demand continued to play a central role. In the U.S., investors accounted for close to one-third of single-family home purchases in 2025, while rental markets showed signs of cooling. Annual rent growth slowed to multi-year lows, even as rents in many cities remained well above pre-pandemic levels.

Looking ahead to 2026, property markets are expected to enter a period of modest recovery rather than rapid expansion. Gradual easing of inflation and stabilizing labor markets may support price growth in some regions, but affordability challenges, high financing costs, and rising non-mortgage expenses are likely to keep market conditions uneven across countries and cities.