How the 2025 housing market is shaping up

How the 2025 Housing Market Is Shaping Up

The U.S. housing market in 2025 is showing signs of balance after several unpredictable years. Home prices are still rising, but more moderately—experts project a 2.5% to 3% increase this year, signaling a shift toward slower, more sustainable growth.

Mortgage rates remain a key factor. With averages holding between 6% and 7%, many buyers—especially first-timers—are still struggling with affordability. That said, rates are expected to ease slightly by late 2025, which could open the door for more activity.

Inventory is gradually improving, thanks to more homeowners listing properties, but overall supply remains below normal levels. As a result, some areas are becoming more buyer-friendly, with more options and less bidding competition—though hot markets still move quickly.

What to watch: Regional differences, interest rate changes, and new construction trends will shape the rest of the year. For now, 2025 looks steady: not a boom, not a bust—just a market finding its footing.