#USHouseMarketStructureDraft The U.S. housing market in 2025 faces challenges and opportunities. Affordability remains a concern due to high mortgage rates, projected to hover around 6.7%, and elevated home prices. The “lock-in effect” discourages homeowners with low-rate mortgages from selling, limiting inventory. However, home price growth is expected to moderate to 2–3%, and regional markets like the Sun Belt may see increased activity. Technological advancements, such as AI in real estate and sustainable construction practices, are reshaping the industry. Policymakers are focusing on easing regulations to stimulate growth and address the housing shortage.