Homebuyers Get Good News About Housing Market
Summary
A new study shows that in the next decade, more houses may be built than people want to buy in the U.S. This could cause home prices to stop rising or even go down, creating better chances for buyers to find affordable homes.Key Facts
- The housing market has faced a shortage of homes, rising prices, and high mortgage rates for years.
- The Mortgage Bankers Association study forecasts that demand for new homes will slow down from 2025 to 2035, averaging about 1.13 million homes per year.
- During the same period, about 12.6 million new housing units could be built, likely exceeding demand.
- Demographic changes, such as fewer young people and lower birth rates, are expected to reduce the need for new houses.
- Aging baby boomers may leave homes to heirs who might sell them, adding to the supply of homes for sale.
- After 2035, demand for new homes could fall even more, to roughly 802,000 yearly.
- Some housing markets already have more homes for sale and fewer buyers moving in, leading to more competition among sellers.
- Experts warn that while prices may fall in the long term, buyers needing homes now should not wait years for prices to drop.
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