10 challenges facing the real estate industry in 2026, according to young leaders

In 2026, the real estate industry faces numerous challenges, according to Business Insider's 2026 Rising Stars of Real Estate. These young leaders highlight several key issues that they believe will shape the industry moving forward.

One challenge is the accessibility of information, which has made many consumers believe they can navigate real estate transactions on their own. While this increased access is beneficial, it is not the same as having the experience, judgment, and relationships necessary to handle a complex transaction. Agents must continue to provide unique value through their expertise, creativity, negotiation skills, and ability to solve problems for their clients.

Another significant issue is the increasing importance of data. Data centers and power-adjacent properties, like data centers, could influence the performance of various property types. Lenders will need to take into account the potential long-term demand for specific properties, considering factors such as AI-driven economies. Real estate professionals must learn to collect, structure, and analyze data effectively in order to gain a competitive advantage.

Artificial intelligence (AI) is also a pressing concern for the industry. While Dobosh sees AI as both a challenge and an opportunity, he acknowledges that it can be overwhelming for professionals. Ben-Zvi Group's Joey Ben-Zvi and Cortland's Saharsh Chordia recognize the need for agents to adapt to AI's impact on the industry. They emphasize that agents should leverage AI tools to enhance their services and better assist clients, rather than being intimidated by it.

Lastly, the wealth gap continues to widen, presenting a major challenge for the industry. Affordability concerns are expected to persist in 2027, as structural squeezes on consumers lead to a dramatic evolution of the homebuying experience. To address these issues, the real estate industry must fundamentally change to better support younger Americans and other consumers at a lower cost. One potential solution is mixed-income development, which can help combat both housing shortages and affordability crises.