BiggerPockets Real Estate Podcast BiggerNews: The 2024 Housing Market in Review (What’s Coming Next?)
15 snips
Dec 6, 2024 The 2024 housing market brought unexpected stability in home prices despite low buyer demand. Inventory issues and an ongoing affordability crisis have left many Americans renting rather than buying. Notable trends included surprising rent price growth in specific cities and challenges in the commercial real estate sector, especially for multifamily properties. The dynamics of rising prices amidst declining listings have created a complex landscape for investors. Get insights to navigate the evolving market for a successful 2025!
AI Snips
Chapters
Transcript
Episode notes
Sluggish Market
- The 2024 residential real estate market was sluggish, with low sales volume due to low affordability.
- This year's projected 3.8 million existing home sales are well below the long-term average of 5.25 million.
Affordability and Demand
- Low affordability is driving down demand, as potential homebuyers are priced out of the market.
- Despite this, the desire to own homes remains strong, especially among younger renters.
Lock-in Effect
- Low affordability also constrains supply, as homeowners are reluctant to sell and then buy in a less favorable market.
- This "lock-in effect" contributes to the low inventory and stable or rising prices.