#USHouseMarketStructureDraft The U.S. housing market in 2025 is characterized by regional disparities, affordability challenges, and evolving buyer preferences. While home prices continue to rise, the pace has slowed, with national home prices projected to increase by 2–3% annually . However, affordability remains a significant issue, especially for first-time buyers, due to elevated mortgage rates and limited inventory.
WSJ
The Finance Post
Personal Banking
In the Northeast and Midwest, limited housing supply has led to rising prices and competition among buyers . Conversely, Southern markets, particularly Texas and Florida, are experiencing falling or flat prices due to a surplus of newly built homes and slowing relocation trends .
WSJ
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The Africa Logistics
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The entry-level housing segment has seen a dramatic surge in prices, with over 230 cities now seeing starter homes priced at $1 million or more—nearly triple what they cost five years ago . This trend is primarily driven by decreased construction during the pandemic, limited inventory, elevated mortgage rates, and rising homeownership costs.
New York Post
Despite these challenges, there are signs of a gradual recovery, with mortgage rates expected to moderate and inventory levels showing slight improvement . However, affordability concerns persist, and prospective buyers are advised to carefully consider their options in this evolving market.
The Africa Logistics
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WSJ
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