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US Housing Market in 2025: Cooling Trends, Affordability Challenges, and Policy Impacts
US Housing Market: Cooling Trend Continues in Latest Data
The US housing market is showing a marked slowdown as of early June 2025, with year-over-year price growth decelerating to just 2.0% in April according to Cotality's latest home price insights released yesterday. This represents a continued cooling trend as the spring homebuying season fades and external economic pressures weigh on the market.
Single-family detached homes are still showing modest growth at 2.46% annually, but single-family attached homes posted their first annual decline since 2012, dropping 0.08%. Regional variations are significant, with the Northeast and Midwest—particularly affordable areas surrounding expensive metros—seeing the largest gains. Meanwhile, Florida, Texas, Hawaii, and Washington D.C. have all reported negative home price growth.
The national average home value stands at $367,711 according to Zillow, up only 1.4% over the past year. Alternative measures show the median existing home price at $403,700, reflecting a 2.7% year-over-year increase.
Mortgage rates remain a key factor affecting affordability, with the average 30-year rate at 6.71% in April. However, housing experts are cautiously optimistic about 2025's outlook. Fannie Mae projects home prices will rise 4.1% year over year in 2025, while the Mortgage Bankers Association anticipates price growth will moderate.
On the construction front, single-family home construction is expected to surpass multifamily building in 2025, with analysts forecasting 3% growth in single-family starts while multifamily starts may decline by 4%. This shift comes amid ongoing debates about housing supply needs, with some experts pointing to an undersupply of affordable housing.
The current administration's policies could significantly impact both housing demand and supply in coming months, potentially reducing demand for multifamily units while also constraining the construction labor supply.
The US housing market is showing a marked slowdown as of early June 2025, with year-over-year price growth decelerating to just 2.0% in April according to Cotality's latest home price insights released yesterday. This represents a continued cooling trend as the spring homebuying season fades and external economic pressures weigh on the market.
Single-family detached homes are still showing modest growth at 2.46% annually, but single-family attached homes posted their first annual decline since 2012, dropping 0.08%. Regional variations are significant, with the Northeast and Midwest—particularly affordable areas surrounding expensive metros—seeing the largest gains. Meanwhile, Florida, Texas, Hawaii, and Washington D.C. have all reported negative home price growth.
The national average home value stands at $367,711 according to Zillow, up only 1.4% over the past year. Alternative measures show the median existing home price at $403,700, reflecting a 2.7% year-over-year increase.
Mortgage rates remain a key factor affecting affordability, with the average 30-year rate at 6.71% in April. However, housing experts are cautiously optimistic about 2025's outlook. Fannie Mae projects home prices will rise 4.1% year over year in 2025, while the Mortgage Bankers Association anticipates price growth will moderate.
On the construction front, single-family home construction is expected to surpass multifamily building in 2025, with analysts forecasting 3% growth in single-family starts while multifamily starts may decline by 4%. This shift comes amid ongoing debates about housing supply needs, with some experts pointing to an undersupply of affordable housing.
The current administration's policies could significantly impact both housing demand and supply in coming months, potentially reducing demand for multifamily units while also constraining the construction labor supply.
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By Quiet. PleaseUS Housing Market: Cooling Trend Continues in Latest Data
The US housing market is showing a marked slowdown as of early June 2025, with year-over-year price growth decelerating to just 2.0% in April according to Cotality's latest home price insights released yesterday. This represents a continued cooling trend as the spring homebuying season fades and external economic pressures weigh on the market.
Single-family detached homes are still showing modest growth at 2.46% annually, but single-family attached homes posted their first annual decline since 2012, dropping 0.08%. Regional variations are significant, with the Northeast and Midwest—particularly affordable areas surrounding expensive metros—seeing the largest gains. Meanwhile, Florida, Texas, Hawaii, and Washington D.C. have all reported negative home price growth.
The national average home value stands at $367,711 according to Zillow, up only 1.4% over the past year. Alternative measures show the median existing home price at $403,700, reflecting a 2.7% year-over-year increase.
Mortgage rates remain a key factor affecting affordability, with the average 30-year rate at 6.71% in April. However, housing experts are cautiously optimistic about 2025's outlook. Fannie Mae projects home prices will rise 4.1% year over year in 2025, while the Mortgage Bankers Association anticipates price growth will moderate.
On the construction front, single-family home construction is expected to surpass multifamily building in 2025, with analysts forecasting 3% growth in single-family starts while multifamily starts may decline by 4%. This shift comes amid ongoing debates about housing supply needs, with some experts pointing to an undersupply of affordable housing.
The current administration's policies could significantly impact both housing demand and supply in coming months, potentially reducing demand for multifamily units while also constraining the construction labor supply.
The US housing market is showing a marked slowdown as of early June 2025, with year-over-year price growth decelerating to just 2.0% in April according to Cotality's latest home price insights released yesterday. This represents a continued cooling trend as the spring homebuying season fades and external economic pressures weigh on the market.
Single-family detached homes are still showing modest growth at 2.46% annually, but single-family attached homes posted their first annual decline since 2012, dropping 0.08%. Regional variations are significant, with the Northeast and Midwest—particularly affordable areas surrounding expensive metros—seeing the largest gains. Meanwhile, Florida, Texas, Hawaii, and Washington D.C. have all reported negative home price growth.
The national average home value stands at $367,711 according to Zillow, up only 1.4% over the past year. Alternative measures show the median existing home price at $403,700, reflecting a 2.7% year-over-year increase.
Mortgage rates remain a key factor affecting affordability, with the average 30-year rate at 6.71% in April. However, housing experts are cautiously optimistic about 2025's outlook. Fannie Mae projects home prices will rise 4.1% year over year in 2025, while the Mortgage Bankers Association anticipates price growth will moderate.
On the construction front, single-family home construction is expected to surpass multifamily building in 2025, with analysts forecasting 3% growth in single-family starts while multifamily starts may decline by 4%. This shift comes amid ongoing debates about housing supply needs, with some experts pointing to an undersupply of affordable housing.
The current administration's policies could significantly impact both housing demand and supply in coming months, potentially reducing demand for multifamily units while also constraining the construction labor supply.