Summary
The U.S. housing market is facing a complex situation with rising home prices despite an increase in available homes for sale. Florida and Texas are leading in new home construction, helping slightly ease the shortage in housing needed to meet demand.
Key Facts
- The U.S. needs about 2.8 million more homes to meet current demand, says J.P. Morgan.
- Homeownership rates in the U.S. fell to 65% in the second quarter of this year, the lowest since 2019.
- Home prices increased by 48% from 2019 to 2024, while median income rose by 22%.
- Florida and Texas lead in building new homes, with over 173,000 permits in Florida and 225,000 in Texas last year.
- The South has the highest number of housing permits in the U.S., followed by the West.
- Apartment construction is slowing from its peak in 2021-2022, likely increasing rents by 2-3% next year.
- Housing shortages remain severe in the Northeast and coastal markets of the West.
- More homes on the market may help reduce competition and slow price growth.
