Over the next five years, although some trends accelerated by the COVID-19 pandemic will continue to influence real estate and land use, other factors will also gain in importance. Among those are an aging population, the rising costs of climate change, a more unstable world and the expansion of artificial intelligence into new corners of the economy. As a consequence, even if the housing market gradually unfreezes as mortgage rates slowly decline from 2023’s highs, the hottest housing markets in 2028 may look a bit different from early 2024.
This is based on data sourced from several authoritative sources, including the U.S. News Housing Market Index, an interactive platform providing a data-driven overview of the housing market nationwide.
Key Findings:
- After falling to a 28-year low in 2023, existing home sales will gradually rebound as mortgage rates decline.
- With home prices holding onto their gains due to lack of supply, true price discovery will occur as lending rates fall and more homes are listed for sale.
- Sales of newly built homes will hold their elevated market share due to builders’ ability to buy down mortgage rates plus pent-up housing demand.
- Rents will stabilize due to added supply and more closely track inflation rates.
U.S. News
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