Close Menu
Rent Magazine
  • News
  • Residential
  • Commercial
  • Realtors
  • Tech
What's Hot

Commercial Real Estate Stabilizes in July 2025 Amid Continued Transition

July 26, 2025

AI and PropTech Transform Real Estate Industry in 2025

June 14, 2025

CRE Recovery: Industrial & Multifamily on the Rise

July 12, 2025
Rent Magazine
  • News
  • Residential
  • Commercial
  • Realtors
  • Tech
Wednesday, July 30
Rent Magazine
You are at:Home » U.S. Housing Market Poised for Modest Growth in 2025, Says NAR Chief Economist
Residential

U.S. Housing Market Poised for Modest Growth in 2025, Says NAR Chief Economist

By Rent Magazine ContributorJune 29, 20253 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter Pinterest WhatsApp Email

The U.S. housing market is expected to experience modest growth in 2025, according to Lawrence Yun, Chief Economist at the National Association of Realtors (NAR). Yun projects a 3% increase in the national median home price and anticipates a rebound in home sales during the latter half of the year, following a period of subdued activity.

Speaking at the REALTORS® Legislative Meetings in Washington, D.C., Yun emphasized that while the market has faced challenges, it is not on the brink of a significant downturn. “Home prices are not on the verge of a nuclear crash,” he stated, highlighting low levels of serious mortgage delinquencies as a sign of market stability.

Yun’s forecast includes a 6% rise in existing-home sales and a 10% increase in new-home sales for 2025. These projections are contingent upon mortgage rates easing to around 6.4% by the end of the year and continued job market growth, with an estimated 1.6 million jobs added to the economy.

Despite these optimistic projections, the housing market continues to grapple with several challenges. Elevated mortgage rates, which have hovered between 6.62% and 6.89%, have dampened buyer demand. Additionally, the national median home price reached a record $422,800 in May, further straining affordability.

Inventory levels have shown some improvement, with a 20.3% increase from the previous year, totaling 1.54 million homes. However, this figure remains below pre-pandemic levels, and the average time homes spend on the market has extended to 27 days.

The market has also seen a rise in canceled home purchase agreements, with 6% of pending sales falling through in May, up from 5% a year earlier. Factors contributing to these cancellations include unexpected costs, changes in finances or employment, and low appraisals.

Looking ahead, Yun remains cautiously optimistic. He predicts that mortgage rates will average 6.4% in the second half of 2025 and decrease to 6.1% in 2026. Correspondingly, he forecasts a 4% increase in the median home price in 2026, along with an 11% rise in existing-home sales and a 5% uptick in new-home sales.

Yun also highlighted the significant wealth gap between homeowners and renters, noting that in 2024, the median net worth of homeowners was $415,000 compared to $10,000 for renters. This disparity underscores the long-term financial benefits of homeownership.

In conclusion, while the U.S. housing market faces ongoing challenges, including high mortgage rates and affordability concerns, projections for 2025 suggest a period of modest growth and gradual recovery, contingent upon favorable economic conditions and interest rate trends.

Related Posts

Homebuilders Focus on Affordability in New Developments

By Rent Magazine ContributorJuly 30, 2025

Homebuyer Interest Holds Steady Amid Economic Slowdown and Trade Optimism

By Rent Magazine ContributorJuly 29, 2025

U.S. Housing Market Shows Early Stabilization in July 2025

By Rent Magazine ContributorJuly 28, 2025

Residential Rentals Gain Momentum in Early Summer 2025

By Rent Magazine ContributorJuly 26, 2025
Don't Miss

Homebuilders Focus on Affordability in New Developments

By Rent Magazine ContributorJuly 30, 2025

As the demand for affordable housing continues to rise across the United States, homebuilders are…

Smart Home Devices Gain Popularity in U.S. Market

July 30, 2025

Homebuyer Interest Holds Steady Amid Economic Slowdown and Trade Optimism

July 29, 2025

U.S. Economic Rebound Boosts Commercial Leasing Demand Across Key Sectors

July 29, 2025
Top Picks

Commercial Real Estate Stabilizes in July 2025 Amid Continued Transition

By Rent Magazine ContributorJuly 26, 2025

AI and PropTech Transform Real Estate Industry in 2025

By Rent Magazine ContributorJune 14, 2025

CRE Recovery: Industrial & Multifamily on the Rise

By Rent Magazine ContributorJuly 12, 2025
About Us
About Us

Rent Magazine was founded with the mission of simplifying the rental process for both landlords and tenants. We understand that finding the perfect rental property or managing a rental portfolio can be a daunting task, which is why we strive to offer comprehensive and reliable information to make your journey smoother.

Top Posts

Commercial Real Estate Stabilizes in July 2025 Amid Continued Transition

July 26, 2025

AI and PropTech Transform Real Estate Industry in 2025

June 14, 2025

CRE Recovery: Industrial & Multifamily on the Rise

July 12, 2025
Don't Miss

Homebuilders Focus on Affordability in New Developments

July 30, 2025

Smart Home Devices Gain Popularity in U.S. Market

July 30, 2025

Homebuyer Interest Holds Steady Amid Economic Slowdown and Trade Optimism

July 29, 2025
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms and Conditions
  • Disclaimer
© 2025 Rent Magazine. All Rights Reserved.

Type above and press Enter to search. Press Esc to cancel.