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01-29-25 | Economic News
The NAHB reported that President-Elect Donald Trump's victory - along with a Republican-controlled Congress - is reshaping the U.S. economy, particularly the housing sector. Rising interest rates have already affected the mortgage market, with 30-year mortgage rates climbing from 6.1% to 6.8%, hurting housing affordability. Economic growth remains solid, but the labor market shows strain, with job growth slowing and residential construction activity dipping. The multifamily market shows mixed sentiment, with developers cautious as they await clarity on policy direction.
The National Association of Realtors (NAR) forecasts a 9.29% increase in existing home sales in 2025, with a stronger rise of 12.98% in 2026. Housing starts are expected to jump by 6.85% in 2025 and 2.76% in 2026.
"After two years of sluggish home sales in 2023 and 2024, existing-home sales are forecasted to rise to 4.47 million in 2025 and more than 5 million in 2026," NAR chiefs economist Lawrence Yun said. "During the next two years, expect a slower rate of growth in home prices that's roughly in line with the consumer price index because of additional supply reaching the market." tinyurl.com/NAR-Sales24, tinyurl.com/NAHB-Election24
Final Word - Looking Into 2025
2024 Yearbook / 2025 Forecast
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Opportunities exist in multifamily and workforce housing, driven by bipartisan support for affordability initiatives and efforts to reduce regulatory barriers. Developers who adapt to these macroeconomic and political changes while focusing on efficiency and liquidity management will be well-positioned for success in this evolving landscape.
The NAHB reported that President-Elect Donald Trump's victory - along with a Republican-controlled Congress - is reshaping the U.S. economy, particularly the housing sector. Rising interest rates have already affected the mortgage market, with 30-year mortgage rates climbing from 6.1% to 6.8%, hurting housing affordability. Economic growth remains solid, but the labor market shows strain, with job growth slowing and residential construction activity dipping. The multifamily market shows mixed sentiment, with developers cautious as they await clarity on policy direction.
The National Association of Realtors (NAR) forecasts a 9.29% increase in existing home sales in 2025, with a stronger rise of 12.98% in 2026. Housing starts are expected to jump by 6.85% in 2025 and 2.76% in 2026.
"After two years of sluggish home sales in 2023 and 2024, existing-home sales are forecasted to rise to 4.47 million in 2025 and more than 5 million in 2026," NAR chiefs economist Lawrence Yun said. "During the next two years, expect a slower rate of growth in home prices that's roughly in line with the consumer price index because of additional supply reaching the market." tinyurl.com/NAR-Sales24, tinyurl.com/NAHB-Election24
Filed Under: LASN YEARBOOK, ECONOMIC REVIEW AND FORECAST, TOTAL CONSTRUCTION SPENDING, LASN
