The Week In Review: February 24, 2026

THE K CURVE

What is the K curve, you ask? It's a description of the current housing market: the high end is buying lots, while the rest of the market is somewhat stagnant.

10 Reasons Why The Wealthy Are Buying Homes:

1. High net worth buyers are wealthier than ever as they are invested in assets like stocks and/or companies, many of which are at record highs.

2. Yes, crypto is down dramatically, but it's still very elevated compared to 5 years ago and represents a small sliver of markets as a whole.

3. Bonus season is very strong with many banks and companies posting record profits.

4. The great $100-trillion-plus generational wealth transfer is accelerating, acting as a form of stimulus in the luxury markets.

5. Taxes are down, delivering more disposable income.

6. Many wealthy people who moved to lower tax states and countries increased their disposable income as a result, not to mention lower rates on capital gains taxes on assets with elevated valuations.

7. In uncertain, turbulent times, homes offer an escape, a sanctuary, a reward for success. Homes offer an indulgence no stock can deliver.

8. Many wealthy individuals view property like other investments: diversifying with homes in different regions of the US, and even around the world.

9. Fear of tax policy shifts if there are political shifts.

And # 10. The last reason may be the most notable one of all: fear that inflation may rise again. The US 10-year Treasury yield that drives mortgage rates can and often does rise as US debt grows. High debt levels increase the supply of Treasuries, requiring higher yields to attract investors, while also fueling inflation concerns and raising risks that push long-term rates upward.

We are seeing this dynamic in the current market, with yields hovering around 4%–4.5% despite Federal Reserve rate cuts. Ballooning deficits are the driving factor. Real estate remains an outstanding hedge against inflation.