The Housing Market Struggles

The U.S. housing market is facing significant challenges, primarily due to increased mortgage rates and a surge in inventory, which spiked by 268% across major southern states like Florida and Texas. Despite a boom in construction and new home sales, there is a noticeable decline in pending sales and affordability, making renting more attractive than buying. As mortgage rates remain high, housing prices are expected to decrease, creating a deflationary environment by 2025. Additionally, the impact of immigration trends is evident, as changes in rent and tenant demographics may add further pressure to the already stagnant housing market.