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**Restrained Homebuying Continues to Impact Multifamily and Retail Real Estate Sectors**
It’s no surprise that fewer people are buying homes these days. With mortgage interest rates remaining high and home prices continuing to rise, many would-be buyers are stepping back from the housing market.
According to John Chang, Vice President at Marcus & Millichap, only about 28% of U.S. households currently qualify for a mortgage on a median-priced home, based on Freddie Mac’s income-to-loan ratios. Speaking in a recent video titled *How Restrained Homebuying is Influencing CRE*, Chang highlighted that potential buyers are not only dissuaded by financing challenges but also by the additional costs associated with homeownership.
This trend is having a noticeable impact on both the multifamily and retail sectors.
**Multifamily Benefits from Homeownership Challenges**
The challenge of home affordability—along with tight mortgage underwriting requirements—has led to greater stability in the rental market. Chang explained that multifamily renter retention is at elevated levels, with a 55% renewal rate, well above the historical average. This strong renter retention is supporting demand and driving net absorption in apartment housing.
Additionally, with construction activity tapering off in both single-family and multifamily sectors, home prices are likely to keep rising. This further reinforces demand for multifamily rentals and positions the sector for continued growth in the coming years.
**Retail Real Estate Also Feels the Ripple Effect**
Challenges in the homebuying space are not confined to the housing market. They’re also influencing retail real estate. Chang noted that about 7% of total retail sales are related to home products, with retailers like Home Depot, Lowe’s, furniture outlets, and general merchandise stores such as Target and Walmart relying heavily on this segment.
There is a strong correlation between home sales and purchases of home-related goods. As long as mortgage rates remain elevated and homebuying stays constrained, sales at these retailers are expected to remain flat. Nevertheless, retail vacancy rates remain strong. For example, lifestyle and power centers posted a 4.7% vacancy rate in Q3 2025—on par with grocery-anchored and unanchored centers, as well as single-tenant retail assets.
Chang concluded with a projection that high housing costs and limited access to ownership will likely persist. As a result, demand for apartment rentals should remain strong, and home-related retail sales are expected to stay steady until mortgage rates see a meaningful decline.
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