10-Year US Treasury Yield Surpasses Rental Cap Rate for First Time in 20 Years

Key Facts

The 10-year US Treasury yield has exceeded the rental capitalization rate for the first time in two decades. Seeking Alpha reported that this milestone signals a significant shift in investment attractiveness, as risk-free returns now sit above the yields typically expected from rental property investments.

Rising interest rates and the ongoing surge in Treasury yields have pushed opportunity costs higher, potentially cooling property valuations and investment flows. This shift in the real estate landscape follows recent global data, including a 0.1% decline in the Canadian New Housing Price Index reported on September 18, 2026.