The past few years have been tough financially, with unknowns continuing to swirl around tariffs and experts unsure if a recession is on the horizon. The last time a recession hit, the housing market was devastated. This time around, homes might take another blow, with a few certain kinds proving difficult to find buyers.
Zachary Gotlib, Esq., licensed real estate attorney with Gotlib Law Offices, along with other real estate experts, highlights the four types of homes that will be hardest to sell.
McMansions
Those big cookie-cutter homes in the suburbs are not going to move quickly or easily right now, according to Donovan Reynolds, Georgia real estate agent for Redfin.
“Oversized homes with dated finishes and choppy floor plans are struggling, especially those built in the early 2000s,” Reynolds said. “In our age of inflation people are prioritizing energy efficiency, location and quality instead.”
Find Out: How To Negotiate a Lower Mortgage Rate, According To Experts
Read Next: This One Low-Effort Money Move Could Change Your Finances in 2026
Home Builds
Homebuilders are currently sitting on a plethora of unsold homes and those are going to be difficult to move, according to Gotlib.
“When rates were low and the COVID-19 pandemic drew buyers to suburban areas, homebuilders were on a tear, trying to build to meet the increasing demand of those looking to move out of urban centers,” Gotlib explained.
“Unfortunately, as rates continued to tick up, the pace of sales for new homes slowed dramatically,” Gotlib added. “This left an excess inventory which now requires homebuilders to discount prices and offer incentives to lure buyers.”
Condos
In particular, condos that come with special assessments and high homeowner association (HOA) fees are likely to not be hot on the real estate market this year.
“With rising insurance premiums and maintenance costs, buyers are wary of getting stuck with a monthly bill that rivals a mortgage,” Reynolds said. He added that, aside from those condos with fees, “motivated sellers” seem to be attached to a lot of condo listings right now.
Luxury Homes
To be clear: Luxury homes will probably do so-so on the market overall in 2026, except for the ones that lack distinctive appeal — they are likely to bite the dust when it comes to being for sale.
“The luxury market is cooling and buyers at that level want uniqueness, views or lifestyle,” Reynolds explained. “Generic high-end homes — even in great neighborhoods — are starting to sit unless they’re well marketed or priced well below replacement cost.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion:
