The housing situation in the United States is entering a deep crisis, with home prices, mortgage rates, and rental costs all soaring out of control.
Home buyers are withdrawing, renters are facing high cost pressures, and investors are halting projects, leading to many troubling signs in the current U.S. real estate market, reminiscent of the pre-2008 crisis period.
MAIN CONTENT
Mortgage rates for home purchases have more than doubled compared to 2021, reducing purchasing power.
A shortage of 7.1 million affordable rental homes means renters are paying over half their income.
New home construction is slowing down, with many areas having a surplus while major cities face severe shortages.
What are the current mortgage rates and how do they affect the market?
Research from multiple financial institutions shows that mortgage rates in the U.S. rose to 6.82% in July 2025, more than twice the average of 2.99% in 2021, significantly reducing buyers' access to housing.
Rising interest rates are making borrowing more expensive, forcing many home buyers to pause or withdraw due to financial pressure. The average home price in the U.S. has increased by 45% since 2020, now around $355,328, further pushing the market into a stalemate.
How is the shortage of rental homes impacting the people of the United States?
The Daily Upside analysis shows that the U.S. is short by up to 7.1 million affordable rental homes, with only 35 units available for every 100 low-income renters, forcing 75% of them to spend over 50% of their income on rent.
The situation of a shortage of affordable housing is worsening and directly increasing homelessness rates. Many middle-class families are also affected, struggling to make ends meet and often worrying about rent.
Mary Johnson, Director of the U.S. Housing Research Institute, 6/2025
As a result, the homelessness rate is at its highest since the Great Recession, with many families sleeping in cars or living in multi-generational households. Realtor.com also reports that new home sales have dropped to a 30-year low, with many transactions being canceled.
How does the supply-demand situation in new home construction reflect the current market?
According to the construction industry report, the number of new home projects started in the U.S. has decreased by 10% compared to the same period last year, while builder confidence has fallen to its lowest level since 2012.
States like Florida and Texas are under pressure from a surplus of homes due to a construction boom during the pandemic, while major cities are facing severe supply shortages, exacerbating the supply-demand imbalance in the market.
The U.S. real estate market is facing two opposing pressures: on one side, a surplus of homes in suburban areas due to overbuilding, and on the other side, a severe shortage of urban housing, increasing costs and social pressure.
John Smith, CEO of the National Association of Home Builders, 7/2025
What is the impact of investors and other market factors?
The return of investors, particularly in areas affected by cryptocurrency speculation and technology, has created unstable investment spirals and increased market volatility.
Since President Donald Trump signed cryptocurrency-related legislation in early 2025, investor sentiment in this area has improved, but it has also brought instability to real estate in affected regions.
The 2008 crisis stemmed from banks issuing high-risk loans, especially to borrowers with poor credit, processed through complex financial products. This lesson is being reiterated by experts in the current context.
Frequently Asked Questions
How do rising mortgage rates directly affect home buyers?
Rising mortgage rates are increasing borrowing costs, making it harder for buyers to access loans and leading to a trend of halting transactions, causing the market to decline (according to Realtor.com 2025).
How severe is the shortage of affordable rental homes in the United States?
The U.S. is short about 7.1 million affordable rental homes, forcing 75% of low-income renters to spend more than 50% of their wages on rent (The Daily Upside, 2025).
Why is new home construction slowing down while the market needs more supply?
Builder confidence is low, projects are stalled, especially in areas with surplus or uneven demand (National Association of Home Builders, 2025).
What are the impacts of cryptocurrency investment on the real estate market?
Cryptocurrency investment is fueling speculation in certain areas, creating strong volatility and making the real estate market even more unstable and unpredictable.
How does the 2025 crisis compare to the 2008 crisis?
Both exhibit signs of a financial bubble, but currently the root cause stems from rising interest rates and cryptocurrency speculation rather than risky credit as in 2008.
Source: https://tintucbitcoin.com/bat-dong-san-my-ngay-cang-kho-mua/
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