Pumps and Property: Global Oil Tensions Could Cloud Housing
Continued tensions with Iran have generated sticker shock at gas pumps, raised inflation concerns and added to the uncertainty in already volatile markets.
According to a Marcus & Millichap brief, instability and confusion are also impacting U.S. housing, at least in the short term.
For one thing, mortgage rates are increasing. The Wall Street Journal reported that, as of April 2, an average 30-year fixed rate stood at 6.57%, a six-month high.
The question is whether—and how—Middle East geopolitical tensions might impact the U.S. housing market.
Supply (Growing) and Demand (Muted)
Marcus & Millichap said that existing-home inventory in February 2026 (the latest metrics available) reached its highest level since 2020. While this is putting the brakes on home price growth, higher mortgage rates could dampen homeowner interest.
Whether mortgages remain more costly depends on the duration of oil price increases. Higher pump prices could lead to higher-for-longer interest rates and a pull-back from potential homebuyers.
Construction Bifurcation
Construction trends diverge by housing type. For example:
- Single-family completions have been steady
- Multifamily completions reached their lowest levels since the late 1980s
Additionally, building materials increased by 7% year over year in February. Higher oil prices could mean less construction, which could potentially “slow housing starts and the possibility of project delays,” the brief said.
Other News
RK Investors Lands $81M Construction Loan for 299-Unit Charlotte Rental Community
An RK Investors-led team obtained an $81 million construction loan for Sutherland at Piper Glen, a 299-unit multifamily development underway in Charlotte’s Piper Glen neighborhood. The financing was provided by Western-Southern Life Insurance Company. The financing was arranged by Nate Sittema, Kristen Reilley and Elliott Voreis with CBRE’s Debt & Structured Finance team. Currently under...
Learn more
Pasadena Offices Sell for Residential Conversion
NAI Capital Commercial EVPs John S. Archibald and Guillermo Olaiz, alongside senior associate Stephen Lam of the Investment Services Group in the Pasadena office, represented the seller, Star Horizon, LLC, in the sale of ZK Plaza, a 41,586-square-foot office building in Pasadena. The property sold for $13,400,000, representing a 3.5% premium over asking. Located at...
Learn more
Berkadia Negotiates Student Housing Property Sale in Kansas
Berkadia announced the sale of Orchard Corners & Suites, a 139-unit, 264-bed, garden-style student housing property serving The University of Kansas in Lawrence, Kansas. Berkadia’s Student Housing and Kansas City investment sales teams collaborated to facilitate the transaction on behalf of the seller, Utah-based Redstone Residential. The Berkadia team included Senior Managing Directors Travis Prince...
Learn more
Brokers
View All-
Remax Real Estate Professionals
Re/Max Real Estate Professionals
-
Jared Ennis
Central CA Commercial | California
-
Rick Recckio
Recckio Real Estate & Development
-
Greg Corbin
Northgate Real Estate Group
Lenders
View AllManagement
View All-
Essex Property Trust, Inc.
California
-
Josh A
California
-
Bob Tuteur
-
Andrew Schildcrout