The US housing industry over the past 48 hours continues a slow shift toward balance after several years favoring sellers. Inventory has been rising nationwide, yet it remains below the level necessary for a fully balanced market. This increase in available homes signals a move away from the red-hot conditions of 2023 and 2024, but sellers still largely hold the upper hand as of mid-June 2025.

Home prices are still climbing, but the growth rate is moderating. Experts now predict that home price appreciation will average about 2 percent in 2025, a considerable slowdown compared to the 4.5 percent seen in 2024. While this may be a relief for buyers, affordability remains a challenge, with high mortgage rates persisting. Recent days have seen slight relief in mortgage rates, providing some hope for improved affordability later in the year, but rates are still discouraging many would-be buyers.

Construction trends are also notable. Single-family home construction is forecast to increase by 3 percent in 2025, but multifamily starts are expected to decline by around 4 percent. This shift may affect rental supply and pricing dynamics, particularly in urban markets. Supply chain issues, including lingering effects from tariffs and global disruptions, continue to impact builders, holding back a more robust supply rebound.

In corporate moves, some of the largest real estate platforms and homebuilders have turned to new technology solutions and modular building partnerships in response to rising costs and labor shortages. No major mergers or acquisitions have been announced in the past two days, but ongoing alliances in proptech and construction innovation indicate the industry is focused on efficiency and affordability.

Regulatory developments remain a wild card. The new presidential administration has signaled support for increased housing supply and affordability measures, but no significant policy changes have been enacted in the past week. However, ongoing discussions about tax incentives and streamlined zoning could influence conditions in the coming months.

Consumer behavior shows a cautious return, with more buyers entering the market thanks to better inventory and subdued price growth. Yet, many are still holding back, waiting for stronger signs of mortgage rate relief. Compared to previous reports, the market now shows signs of stabilizing, with less volatility in both demand and pricing. Industry leaders are responding by adjusting pricing strategies and investing in customer service, aiming to maintain momentum in a still unpredictable environment[2][3][4].

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