#USHouseMarketStructureDraft

The U.S. housing market in 2025 is defined by limited supply, elevated mortgage rates (~6.9%), and evolving demand. Inventory remains tight as homeowners retain low-rate mortgages, creating a “lock-in effect.” High borrowing costs have cooled activity, but prices remain supported by constrained supply and steady millennial and institutional interest.

Markets in the Sun Belt and Midwest continue to grow due to affordability and migration, while coastal cities show signs of stagnation. Institutional buyers are adjusting strategies but still influence rental-heavy regions.

With ongoing policy discussions and slow construction, structural imbalances persist—presenting both risks and long-term opportunities, especially in REITs and tokenized real estate investments.