98% of Housing Markets “Weaker” Than Last Year: Good News for Investors?

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May 22, 2025

Nearly all major U.S. housing markets are experiencing weaker price growth, raising questions about a potential market correction. However, this could signal a golden opportunity for real estate investors. As prices soften and mortgage rates possibly decline, affordability may rise, creating a more inviting market for first-time buyers. One expert shares a significant personal investment he's making, suggesting that current market conditions could be a strategic move for long-term gains. Is it time to rethink the housing market's future?

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INSIGHT

Housing Market Softening Explained

Nearly all major U.S. housing markets are experiencing slower price growth, signaling softening, not crashing.
This trend reflects a gradual market adjustment rather than a widespread correction or crisis.

INSIGHT

Diverse Investor Reactions

Housing market softening impacts investors differently depending on their situation and goals.
Some may worry about slow equity growth while others see opportunity in improving affordability.

INSIGHT

Softening Housing Prices Aid Affordability

Current housing unaffordability is near 40-year lows, adversely affecting cash flow and wealth building.
Softening prices combined with wage growth and falling mortgage rates can restore affordability without a crash.

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49 of the nation’s 50 largest metro area housing markets are showing “weaker” home price growth in 2025. For some, this signals a long-predicted crash/correction on the horizon. But for others (like Dave), it’s something very different, and could be a huge help for the aspiring real estate investor.

For years, we’ve been struggling with a dangerous combination of high rates, high home prices, and low affordability. If top markets are starting to weaken and prices are softening, could this actually be a good sign for investors and buyers waiting on the sidelines? If mortgage rates come down and wages continue to grow, are we inching closer to equilibrium and the more affordable housing market we’ve all been waiting for?

In this bonus episode, Dave is explaining why housing market “weakness” is a sign of long-term strength and a huge opportunity for investors willing to make moves. Don’t believe him? Dave shares a personal bet he’s making on the housing market—with a lot of money on the line—that could turn out to be a genius move in the years ahead. What’s his plan? Stick around, we’re getting into it!

In This Episode We Cover

Why 98% of major housing markets are seeing “weaker” home price growth in 2025

Why price softness does NOT signal a crash or correction

Good news for first-time homebuyers: purchasing could become more affordable

The three factors of an affordable housing market (and are we shifting to better affordability?)

Dave’s recent rental property move to capitalize on this window of opportunity

And So Much More!

Check out more resources from this show on ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1124⁠-5

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

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