• US Housing Market Slowdown: Inventory Rise, Affordability Woes Persist

  • Nov 27 2024
  • Length: 3 mins
  • Podcast

US Housing Market Slowdown: Inventory Rise, Affordability Woes Persist

Listen for free

View show details

  • Summary

  • The current state of the US housing industry is characterized by a slowdown in demand, high prices, and tight inventory levels. According to the S&P CoreLogic Case-Shiller Index, home prices increased by 4.2% in August 2024, marking the 15th consecutive all-time high[2]. However, the growth rate is significantly lower than the 19.28% increase seen in the previous year[1].

    The median sale price for an existing home in the US was $404,500 in September 2024, the highest September median ever recorded by the National Association of Realtors (NAR)[2]. Despite this, existing-home sales in September were down by 3.5% from last year, indicating a softening in the market[2].

    Inventory levels remain low, with a 4.3-month supply of housing inventory as of September 2024, which is still short of the 5 to 6 months needed for a balanced market[2]. However, the overall number of existing homes on the market for sale has increased by 23% from the previous year, reaching 1.39 million units[2].

    New residential construction statistics show a mixed picture. Building permits in April 2024 were at a seasonally adjusted annual rate of 1,440,000, which is 2.0% below the April 2023 rate[3]. Housing starts were at a rate of 1,360,000, which is 0.6% below the April 2023 rate[3]. However, housing completions rose by 14.6% year-over-year to a rate of 1,623,000[3].

    The high cost of housing continues to impact affordability. The Harvard Joint Center for Housing Studies (JCHS) report highlights that home prices have increased by 47% since early 2020, making the median sales price about five times the median household income[4]. Elevated interest rates have also made homeownership increasingly unattainable for many Americans[4].

    In response to these challenges, industry leaders are focusing on increasing supply and promoting affordable housing. For example, the surge in multifamily housing has begun to cool the rental market, with vacancies rising and rent growth slowing[4]. Property owners and managers are also working closely with policymakers and nonprofits to develop sustainable and effective solutions to address the affordability crisis and rising homelessness[4].

    Compared to the previous reporting period, the housing market has seen a slight increase in inventory levels and a slowdown in price growth. However, the market remains tight, and affordability continues to be a significant concern. As the industry navigates these challenges, it is crucial for policymakers, nonprofits, and the private sector to work together to develop sustainable and effective solutions to address the multifaceted challenges facing the housing market.
    Show More Show Less
Show More Show Less
activate_Holiday_promo_in_buybox_DT_T2

What listeners say about US Housing Market Slowdown: Inventory Rise, Affordability Woes Persist

Average customer ratings

Reviews - Please select the tabs below to change the source of reviews.

Audible.co.uk reviews

Amazon reviews
No Reviews are Available