- November 16, 2023
- Reading time about 5 minutes
The housing market in the United States is a complex and ever-changing landscape over the years, making it hard to predict with certainty what the next five years will hold. It is important to stay updated with the latest trends and expert opinions to figure out the key aspects that we can expect in the coming years. Though the market is quite competitive, having the right Real Estate Auction Platform can be a great help for quicker and more profitable property sales with less effort and costs involved.
In this blog, we will check out the best housing market predictions for the next 5 years and get insights into what the experts will predict in the years to come.
Housing Market Predictions in Coming Years By Experts
Though it can be difficult to predict the housing market for the upcoming years, we will discover some of the top insights predicted by our experts. As we know, the pandemic outbreak has had a huge impact on the real estate market and these effects will continue to hamper the demand and supply of the regional housing market over the next years.
Many Real Estate Software For Brokers and agents are integrating new trends such as the latest technologies, changing demographics, the position of the local job markets, remote work culture, etc. which will shape the housing market in the years to come.
As per the U.S News Housing Market Index, we will see the predictions of the housing market in years to come.
Housing Market Predictions for 2024
- After many years of uncertainty, the year 2024 is expected to bring more stability to the housing market as mortgage rates drop and home prices are likely to remain flat throughout the year 2024. This means buyers looking for properties can finally enter the market.
- Another prediction by the US News Housing Market Index and the National Association of Home Builders states that the national housing shortage will remain till the end of 2020s. This means the nation’s builders must make time to find suitable land, skilled labour, and materials to create a much-needed supply.
- The consequences of climate change and rising costs will impact the housing market, which means homebuyers and builders will need extra costs to build homes that are resilient to extreme weather events. This will impact the total cost of homeownership from purchase rate, and mortgage charges to taxes, maintenance costs & other expenses.
Housing Market Predictions for 2025
- In 2025, the housing market will grow again with home prices increasing by 1 to 2% above the current inflation rate due to reasons like high real incomes, lower mortgage rates & higher affordability.
- More home buyers will join with family and friends to purchase homes as intergenerational households, and families created from friendships increasingly pool multiple income sources to buy homes and avoid housing cost uncertainty.
- Talking about the new trends such as 3D printing, structural components and construction software that reduce waste materials, the construction section will change impacting the way homes are built for better quality and quicker construction timelines.
Housing Market Predictions for 2026
- As home prices continue to rise at a moderate rate, the housing market is predicted to move upwards. The long-term demand for housing will be fulfilled between 2025 to 2030 as stated by the National Association of Home Builders. But, the changing demographics will lead to lower demand for new homes, leading to a slowdown in construction activity.
- More buyers will join with friends & families to buy homes in 2026 as the increasing cost of housing and desire for more space & privacy are more likely to drive people and pool their resources. This will result in more co-living arrangements and multi-generational households.
- As the cost of climate change & external factors adds up to the total homeownership cost, there will be additional factors like increasing cost of insurance & building materials that will impact the homeownership cost in 2026.
Housing Market Predictions for 2027
- With factors like economic growth, interest rates, rising population and changing government policies, predicting the housing market for 2027 can be a big challenge. However, one trend that can impact the housing market in 2027 is the continued urbanization of populations.
- More people will move from rural to urban areas leading to higher demand for housing in cities, eventually increasing construction of apartment buildings and townhouses to meet the increasing population rate.
- Another factor is the increased usage of technology with a more remote work culture, which may make more people relocate to suburban and rural areas, leading to higher demand for single-family homes in such areas.
- The next thing that we will see in 2027 is changing government policies impacting the housing market. For instance, changes to zoning laws or building codes will impact the housing supply, eventually leading to more changes in prices.
We know that the housing market will remain strong in the next 5 years but will surely undergo a huge shift in the coming years, with home prices decreasing and a shift towards a buyers’ market. All these changes are resulting from several factors like high mortgage rates, inventory shortage and high prices.
Ensure that you monitor the trends to know the implications of the housing market in the US for the broader economy while planning to build your real estate business presence. Connect with our experts to help reap immense benefits in the real estate market with a dedicated Real Estate IDX Website that can revolutionize the complete process of buying and selling properties.