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US homes will not become affordable in 2025 — Here’s why
Spending days, nights, and precious toilet time scrolling on housing apps hunting for something decent in your price range? You’re not alone. It’s the same story for many Americans.
The U.S. housing market has been red hot the past few years. Coupled with high interest rates, sky-high real estate prices don’t seem to be going anywhere.
Here’s why you shouldn’t expect 2025 to be different.
See that sharp upward trend immediately after 2020 in the above graph? That’s the median sale price of U.S. houses in the past five years.
Notice how you don’t see any sharp downward turns on the graph. There’s a slight decline in 2008, however, that’s still relatively dismal compared to the increases throughout the past 50 years.
The main causes of the recent rise boil down to:
- High interest rates
- High demand
- Low inventory
It’s a seller’s market.
