Investor Sentiment Hits a Record Low—but Investors Are Adapting

Real estate investors have rarely been as pessimistic about current market conditions as they are today.

The RCN Capital/CJ Patrick Company Investor Sentiment Index (ISI) fell to 84 in the Summer 2026 survey, its lowest level since the index was launched three years ago. That marks the second consecutive quarterly decline, following a reading of 87 in the Spring, and an 18-point drop from 102 a year ago.

But the headline number only tells part of the story.

Only 26% believe conditions are better than they were a year ago, while 45% say conditions have worsened. At the same time, investors are somewhat more optimistic about what comes next: 36% expect market conditions to improve over the next six months, up from 34% in the Spring, while 27% expect conditions to deteriorate, down from 32%.

That combination—deep dissatisfaction with today’s market but somewhat greater optimism about tomorrow—is one of the most important themes in this quarter’s results.