My XML layout is not rendering with this error message. I am already using Java 8.
Also using latest build tools in Gradle.
and
My issue was that the Android N was "partially installed".
My solution was to go to - Preferences/Appearances and Behavior/System Settings/Android SDK and check the Status. If it's "partially installed" then you have to uninstall then reinstall. (Uncheck the checkbox and hit apply; it will uninstall; then you can check the box and install it again) Worked for me. If you go to lower version(like 23) then you have to change the buildToolsVersion variable to "23.0.0" in the build.gradle.