StepStone Real Estate House Views: Spring 2026 Report

StepStone’s Spring 2026 Real Estate House Views report examines the current real estate market environment, where pricing appears to be near a cycle bottom but uncertainty remains elevated due to inflation, slower global growth, geopolitical stress and shifting capital market conditions.

The report outlines how income, asset selection and manager skill are becoming increasingly important as real estate fundamentals stabilize unevenly across regions, property types and strategies.

Key Takeaways

• Real estate pricing appears to be around a cycle bottom, while elevated uncertainty, resurgent inflation and slower global growth continue to shape investor sentiment.
• Income remains a key driver of long-term real estate returns, especially as 5- to 10-year interest rates, which influence real estate pricing, are expected to remain range bound absent a recession.
• Falling supply should support fundamentals across many sectors, while slow positive absorption continues across most property types and regions.
• StepStone favors quality assets with in-place, durable income, with a focus on residential, necessity-based properties, senior housing, medical office and select data center opportunities.
• Debt, recapitalization and distress-related strategies may continue to offer compelling opportunities, particularly as traditional lenders remain selective and balance sheet challenges persist.

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Important Information

This document is for informational purposes and is meant only to provide a broad overview for discussion purposes. This document does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, or as an offer to provide advisory or other services by StepStone Group LP, StepStone Group Real Assets LP, StepStone Group Real Estate LP, StepStone Group Private Wealth LLC, StepStone Group Private Debt AG, StepStone Group Europe Alternative Investments Limited and StepStone Group Private Debt LLC, their subsidiaries or affiliates, collectively, “StepStone,” in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

Information contained in this document should not be construed as financial or investment advice on any subject matter. StepStone expressly disclaims all liability in respect to actions taken based on any or all of the information in this document. Expressions of opinion are intended solely as general market commentary and do not constitute investment advice or a guarantee of returns. All expressions of opinion are as of the date of this document, are subject to change without notice and may differ from views held by other businesses of StepStone.

Some information used in the presentation has been obtained from third parties through various published and unpublished sources considered to be reliable. StepStone does not guarantee its accuracy or completeness and accepts no liability for any direct or consequential losses arising from its use. Thus, all such information is subject to independent verification by prospective investors.

All information provided herein is subject to change. All data is as of April 2026, unless otherwise noted.

PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. ACTUAL PERFORMANCE MAY VARY.