The US housing industry has seen notable cooling in the past 48 hours, driven by higher costs, slower demand, and rising inventory levels. Mortgage rates have slipped to 6.16 percent, near the lowest point this year, and the typical payment is now about two thousand five hundred eight dollars monthly. Despite this, buyers remain cautious, resulting in a mere zero point seven percent year-over-year increase in pending home sales—representing the smallest gain in four months. Properties are staying on the market longer, with the median time to contract rising to forty-eight days, the slowest pace since 2019. Sellers are re-entering the market, with new listings up four percent compared to last year, but the increased inventory is dampening price growth and forcing builders to offer discounts. Recently, the supply of new homes surged to nine point eight months, the highest since 2022. In many markets, especially the Sun Belt and Mountain West, active inventory now matches or exceeds pre-pandemic levels, giving buyers more leverage. Uniquely, the median price of a new home has dropped below that of an existing home, prompting many builders to pull back on new construction starts. This trend reverses typical pricing norms and reflects the pressure facing homebuilders due to soft demand.

In multifamily sectors, demand for apartments in the third quarter barely matched half the average of the last decade, with a sixty-three thousand unit surplus—the steepest gap since 1993. Rent growth is also softening; average national rents slipped by zero point three percent in October to one thousand seven hundred eight dollars, and annual rent growth has dropped to zero point eight percent, the lowest level in recent years. High-density metros are the most affected, prompting a shift in investments and occupancy toward low-rise and subsidized rental properties.

US housing leaders are responding by focusing on lower-density markets, discounting inventory, adjusting new starts, and streamlining operations. Real estate firms report the slowest sales pace in thirty years and are increasing digital engagement to support buyers who are becoming more selective and price-sensitive. Compared to early 2025, the market today is marked by greater affordability concerns, longer sale cycles, and broader buyer leverage, signaling a continued period of adjustment and heightened competition.

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This content was created in partnership and with the help of Artificial Intelligence AI