Housing Economy

Latest news in the housing economy

Latest News

  • June AIA/Deltek Architecture Billings Index gains three points

    June AIA/Deltek Architecture Billings Index gains three points

    The American Institute of Architects (AIA) recently released the AIA/Deltek Architecture Billings Index® (ABI) for June; the score at 47.3 is a three-point increase from May.

    While the reading increased, a metric below 50 indicates an equal share of firms reporting decreases and increases.

    The South continues its reign as the strongest market with a reading at 49.5, despite a 0.01% decrease from May. The West trails at 45.6 with the Midwest close behind at 45.1. The Northeast dropped from 46.2 in May to 44.9 reading in June.

    “Architecture firms remain mired in one of the longest running downturns in the 30-plus year history of the ABI, which now stretches to 41 months without a majority of firms reporting billings growth,” said AIA Chief Economist, Richard Branch. “The uncertainty over the conflict in Iran along with high interest rates and significant labor shortages will continue to weigh on construction – and architect billings over the next several months.”

    Read Full Article 

  • Florida and California lead in luxury home sales

    Florida and California lead in luxury home sales

    June’s largest home sales were split between the coasts of Florida and Southern California. Luxury home sales strongly led each of the state’s housing markets. The most expensive U.S. home sale of the month, a beachfront estate in Manalapan, Fla., sold for $71 million. The second largest sale was a $47 million compound in Beverly Hills, Calif., followed by two coastal Florida properties that each sold for approximately $43 million: a Palm Beach mansion and a Bal Harbour Home.

    In California, some of the largest sales came from the following luxury properties: a West Hollywood penthouse, a Carpinteria beach house and a Newport Beach estate.

    All 10 of June’s largest home sales sold for more than $30 million.

    Read Full Article

  • Builder confidence remains soft

    Builder confidence remains soft

    According to the National Association of Home Builders/Wells Fargo Housing Market Index (HMI), builder confidence in the market for newly built single-family homes fell two points to 34 in July, down from an upwardly revised reading of 36 in June. Economic uncertainty and persistent affordability challenges driven by rising material prices, high land costs and elevated mortgage rates continue to weigh on the market.

    However, the newly enacted 21st Century ROAD to Housing Act is a positive step that will help expand housing supply and lower overall housing costs. While more policy changes are needed at the state and local levels, the recently passed legislation is expected to boost builder confidence.

    The latest HMI survey also revealed that 37% of builders cut prices in July, up from 35% in June and 32% in May.

    Read Full Article

Exclusive Feature

  • Luxury home prices outpace rest of market

    Luxury home prices outpace rest of market

    Luxury home prices are rising faster than any other market, a recent report from Redfin explains. Year over year, the median U.S. luxury home sale price rose 4.7%.

    It’s a reasonable turn in the sector considering that many high-end homebuyers do not have the same affordability concerns or mortgage rate sensitivities. Therefore, the demand for luxury homes continues to rise.

    Pending sales of luxury homes gained 5.2% year over year, while pending sales for the rest of the market grew 3.6%.

    This is seen side by side in some markets, such as Tampa, where luxury home prices rose 15.6% year over year while all other homes actually saw a decrease of 0.5%.

    The influx of luxury buyers is extremely prominent in one major metro: the Bay Area. Pending sales for luxury homes in San Francisco climbed 45.9% year over year, largely attributed to the AI sector.

    Read Full Article 

  • AIA/Deltek ABI reports decline

    AIA/Deltek ABI reports decline

    The latest AIA/Deltek Architecture Billings Index® (ABI) reported a decrease from its April posting of 48.3, down to 44.5. This is the lowest level since the beginning of 2026. Signaling effects from general economic uncertainty in the past few months, despite cautious optimism earlier in the year.

    The South remains the strongest regional market at 49.6, with the Northeast (46.2), West (45.4) and Midwest (45.3) trailing a bit behind.

    “The uncertainty created by the Iran conflict, and substantially higher energy costs, weighed on architect billings in May,” said AIA Chief Economist, Richard Branch. “Higher interest rates, rapidly rising material costs and continued labor shortages all contributed to softer demand.”

    Read Full Article 

  • Takeaways from the current housing economy

    Takeaways from the current housing economy

    The Harvard Joint Center for Housing Studies released its annual State of the Nation’s Housing report, offering an overview of the current housing market. Many indicators show that housing market activity remained flat in early 2026. New home sales levels remained relatively unchanged, rental retention rates increased and new occupancies declined. Construction saw a slight decrease of 1% over the past year. Key takeaways from the report include subdued activity, weakening demand, and sidelined potential homebuyers.

    The current weakness in housing demand is a direct result of several underlying economic drivers and a decreasing employment growth rate.

    With many U.S. residents burdened by high housing costs, an increasing number of state and local governments are taking action to increase housing production.

    Read Full Article

  • May 2026 Luxury Housing Market Report

    May 2026 Luxury Housing Market Report

    Luxury home prices across the U.S. reached $1,283,432 in May 2026, despite year-over-year declines continuing at -1.4%. The pace of annual softening has pulled back considerably from the 5%-plus drops seen in early 2025, suggesting an uptick in the national luxury housing market.

    Among tracked luxury metros, Minneapolis and Boise City, Idaho, have fully surpassed their pandemic-era peaks as of February, at 5% and 4.2%, respectively. The composition of the top 10 luxury markets was unchanged from April, with the same 10 appearing in slightly different order.

    Year over year, Naples-Marco Island, Fla., at 4.3%, and Crestview-Fort Walton Beach-Destin, Fla., at 3.2%, were the only markets on the list with positive annual price growth.

    Read Full Article

  • June 2026 Housing Market Forecast

    June 2026 Housing Market Forecast

    The National Association of REALTORS released an analysis forecasting the housing market dynamics in June, including sales, inventory and buying trends. The analysis cited various factors, called seasonality trends, that influence the housing market and compared the current market conditions to previous seasonality trends to predict the June 2026 housing forecast.

    The analysis found that existing-home sales typically rise by 8.2% during the month, reaching their highest level of the year on average. The beginning of the summer marks a distinct shift in the housing market, characterized by the end of the school year for most localities, additional daylight and consistently warm weather. These conditions provide more flexibility for potential buyers to view a wider range of open listings.

    June usually sees an average increase of 0.8% in housing inventory, presenting specific advantages for sellers, including the optimal moving conditions previously mentioned, if they plan to buy and the high prices associated with the season.

    Historically, the average home spends about 30 days on the market in June, representing the fastest turnover in the year, alongside May. The favorable weather conditions drive prospective buyers to spend more time viewing homes, resulting in more frequent offers and decreasing the days spent on the market.

    Read Full Article

  • Less young adults are first-time homebuyers

    Less young adults are first-time homebuyers

    According to a report from First American, young adults are the missing gap in first-time homebuyers. Nearly half of 20-to 24-year-olds still lived with their parents in 2025. Only about 25% of 25-to 29-year-olds owned their homes.

    The reality is that homeownership is arriving later in life for young adults, with the delay often originating at moving out of their childhood homes.

    Young adults are moving through traditional markers of adulthood, such as moving out, work, marriage and children, on a different timeline than previous generations. As those milestones shift, the housing sequence that often follows,  moving out, renting and buying, also shifts.

    Most young adults are still renting. While today’s renters are likely to become tomorrow’s buyer, that “tomorrow” is happening later in life. The reasons for this vary between affordability challenges, as well as other life milestones that have shifted into the later years, such as school, work or family.

    Read Full Article

  • Average homebuyer’s down payment decreases

    Average homebuyer’s down payment decreases

    According to a new Redfin analysis, the average homebuyer’s down payment is down from last year, falling to $64,000 in March 2026, down 1.5% year-over-year. The average down payment was 15%, down from 16.1% in 2025.

    Down payment percentages were highest in three California metros: San Jose, San Francisco and Anaheim, all at 25% each.

    Down payments were lowest in Virginia Beach at 2% and Detroit at 5%, which are both considered affordable markets.

    The data in the report is from an analysis of county records across 40 of the most populous U.S. metropolitan areas. March 2026 is the most recent month for which data is available.

    Read Full Article

  • Cotality reports June U.S. home price insights

    Cotality reports June U.S. home price insights

    Cotality released the June 2026 U.S. home price insights. The report found that overall, the year-over-year home price increase remains relatively steady at 0.4%. However, the recent surge in mortgage rates has disrupted the spring homebuying season and reversed some of the affordability gains created by the lower rates seen throughout 2025.

    “Market strength suggests that some buyers remain insulated from mortgage-rate volatility and are supported by substantial home equity and stock market gains,” said Cotality Chief Economist Dr. Selma Hepp. “Meanwhile, markets that depend more heavily on traditional mortgage financing and rate-sensitive buyers are seeing prices stay relatively flat. Overall, fewer markets posted year-over-year price declines in April than in prior months, pointing to continued stabilization across the housing market.”

    Read Full Article

  • Housing economist comments on core inflation report

    Housing economist comments on core inflation report

    The U.S. Bureau of Economic Analysis (BEA) released the April report for Personal Income and Outlays, outlining core inflation at 0.4% for the month and a 3.8%12-month inflation rate. This is an indication that on the next Fed decision on June 17, 2026 might continue March’s holding pattern.

    The BEA data does not relay one singular outcome for the housing market with a varying landscape across the U.S.

    “When inflation runs this hot, the Fed stays put and mortgage rates stay stuck in the mid-6s,” said Dr. Selma Hepp, Cotality‘s Chief Economist and regular contributor to Builder and Developer. “That freezes the national housing market in place. But a flat national number is hiding a lot behind the scenes. In fact, at a local level, many markets are hiding a complex landscape that is completely fractured from national numbers.”

    Read More 

  • Home buying demand ticks up

    Home buying demand ticks up

    The housing market is showing signs of life; contract cancellations decreased in April 2026, indicating an uptick in homebuyers’ demand. Home-sale agreements were only down by -0.1 percentage points from March on a seasonally adjusted basis. This is tied with January for the lowest level of contract cancellations since September 2024, though the level has varied by less than half a percentage point over the last year and a half.

    Contract cancellations inched down this spring as homebuyers and sellers gained a clearer sense of housing-market conditions after several years of volatility. Additionally, the average 30-year fixed mortgage rate declined for three straight weeks in April, giving some buyers confidence in locking in a rate.

    Read More

  • Price drops become less common as market stabilizes

    Price drops become less common as market stabilizes

    According to a new analysis from Redfin, price cuts were slightly less common in April 2026, as the housing market showed signs of stabilization and rising homebuyer demand. More than 35.4% of U.S. home sellers cut their asking price in April 2026, down slightly from 35.6% a month earlier on a seasonally adjusted basis. This is significantly down from a record high of 36.6% in August 2025.

    The decreasing commonality of price cuts is helping sellers regain some negotiating power. Buyers are slowly returning as the job market improves, becoming a bit more confident in their earnings. While buyers are still outnumbered by sellers, they are slightly less so than before, indicating a shift towards a balanced housing market.

    Read Full Article

  • Mortgage rates average 6.51%

    Mortgage rates average 6.51%

    On May 21, 2026, Freddie Mac released the results of its Primary Mortgage Market Survey, showing the 30-year fixed-rate mortgage (FRM) averaged 6.51%. This is up from last week, when it averaged 6.36%. In May 2025, the 30-year FRM averaged 6.86%.

    “The 30-year fixed-rate mortgage averaged 6.51% this week,” said Sam Khater, Freddie Mac’s Chief Economist. “As rates fluctuate, aspiring buyers should remember that by shopping around for the best mortgage rate and getting multiple quotes, they can potentially save thousands.”

    The 15-year FRM averaged 5.85%, up from last week when it averaged 5.71%. A year ago at this time, the 15-year FRM averaged 6.01%.

    Read More

Exclusive Feature

  • Southern California Housing Market Forecast

    Southern California Housing Market Forecast

    According to the California Association of REALTORS, March 2026 showed fluctuating patterns for existing, single-family homes across the state. Across Southern California, there was a 3% increase in year-over-year home sales. The median home price saw a 0.3% increase year-over-year, reaching around $880,000 in March.

    While a modest gain, it indicates that prices are no longer skyrocketing or falling significantly. Overall, it is a sign of a market that is trying to find its equilibrium.

    Looking toward the rest of the year, prices are expected to continue their trend of modest, steady growth. If economic conditions continue to stabilize, inflation remains in check and if mortgage rates begin to ease consecutively, sales volume could see an uptick.

    Read More

  • Residential construction material prices are up

    Residential construction material prices are up

    According to the most recent Producer Price Index (PPI), input prices for residential construction rose in April. Various factors are raising costs around the U.S., but particularly for the residential market energy prices are at the forefront.

    The PPI for final demand rose 1.4% in April following a 0.7% increase in March. Excluding energy prices rising, building materials are also up 3.7% from a year ago. Apart from goods, services also saw a significant incline from a year ago.

    “Long-distance motor carrying service prices rose 10.4% in April and were 18.3% higher than a year ago, while local motor carrying service prices rose 1.4% in April and were 6.3% higher than a year ago,” said Jess Wade, economist and director of tax and trade policy analysis at the National Association of Homebuilders. “These are the two transportation services that are represented as inputs in the residential construction price index.

    Read More 

  • Pending home sales climb to the highest level since 2023

    Pending home sales climb to the highest level since 2023

    In April, pending home sales hit the highest level since February 2023, rising 2% from the month before. This is the largest increase since March 2025. Existing home sales also climbed to a seasonally adjusted annual rate of 4.33 million, the highest level since February 2023.

    The median U.S. home sale price rose 2.4% year-over-year in April to $396,173, the biggest increase in 13 months, as house hunters came off the sidelines amid a stabilizing job market. The April jobs report showed an increase in hiring, which likely helped boost housing demand.

    “Homebuyer demand increased significantly at the end of March following a relatively quiet period in January and February,” said Dawn Kane, a Redfin Premier real estate agent working in both Maryland and Pennsylvania. “This is the first time post-pandemic I’ve felt the frenzy and comeback of a true spring market.”

    Read More

  • Housing market power begins to shift

    Housing market power begins to shift

    For months, the balance of power in the U.S. housing market has been shifting. Now, the negotiating power that was once held by buyers is shifting. There were an estimated 46.5% more home sellers than buyers in the U.S. housing market in April 2026, down from 47.5% the month before and a high of 48.9% in December 2025. While the current housing market is still slightly leaning in favor of homebuyers, it is no longer a strengthening homebuyers market, indicating a possible shift towards balance.

    “Homebuyer demand has been dwindling for months, but finally ticked up in April thanks to a strengthening job market and declining recession risk,” said Redfin Senior Economist Asad Khan. “More house hunters entering the market helped narrow the gap between the number of buyers and sellers. If the number of buyers continues to grow, more homeowners may see it as an opportunity to list their homes, helping bring the market out of this deep freeze.”

    There were an estimated 1 million homebuyers in the market in April, up 2% from March; the largest increase in 13 months. Meanwhile, there were an estimated 1.5 million sellers in the market, up 1.3% month over month, marking the largest increase in a year.

    Read More

  • Senate confirms new Federal Reserve chair

    Senate confirms new Federal Reserve chair

    On May 13, 2026, the U.S. Senate confirmed Kevin Warsh as the next chairman of the Federal Reserve.  The 54-45 vote, mostly along party lines, marks the return of Warsh to the Fed where he previously served on the Board of Governors from 2006 to 2011. Warsh will replace the current chair Jerome Powell, he has led the Federal Reserve since 2018.

    Previous to his new position, Warsh served as the Shepard Family Distinguished Visiting Fellow in Economics at the Hoover Institution at Stanford University. He  was also a lecturer at the Stanford Graduate School of Business. Many housing economists predict the next action from the Fed might be a rate hike instead of a cut.

    “A Warsh-led Fed matters for housing less because of where rates are today and more because of how policy is communicated going forward,” said Cotality Chief Economist Dr. Selma Hepp. “For housing, that likely means fewer sharp policy pivots but a longer period of rate uncertainty. Current assessment is that Warsh could lean modestly more dovish over time — anchored by productivity optimism — offers some hope that policy won’t remain overly restrictive if inflation continues to cool. However, his skepticism of an oversized balance sheet and openness to rethinking Fed communication tools could keep mortgage rates volatile even if the policy rate trends lower. The risk for housing is that affordability remains trapped: rates may ease only gradually while prices stay elevated due to limited supply. The opportunity, if Warsh succeeds in restoring Fed credibility, is a steadier long‑term financing environment that allows builders, lenders and buyers to plan with greater confidence.”
  • Mortgage rates average 6.37%

    Mortgage rates average 6.37%

    On May 7, 2026, Freddie Mac released the results of its Primary Mortgage Market Survey, showing the 30-year fixed-rate mortgage (FRM) averaged 6.37%. This is up from last week, when it averaged 6.30%. A year ago at this time, the 30-year FRM averaged 6.76%.

    “Recent data points to slightly better conditions for buyers with a boost in new-home sales, median new-home prices being down to their lowest level since July 2021, and higher inventory than in recent years,” said Sam Khater, Freddie Mac’s Chief Economist. “Together, these trends could modestly ease affordability pressures through the spring home buying season.”

    The 15-year FRM averaged 5.72%, up from last week when it averaged 5.64%. At the same time last year, the 15-year FRM averaged 5.89%.

    Read More

Exclusive Feature

  • Cotality releases May 2026 home price insights

    Cotality releases May 2026 home price insights

    Cotality released its May 2026 U.S. home price insights report on May 5, 2026. Despite year-over-year price growth continuing to slow, the report noted that, looking ahead to March 2027, data suggests a broader market rebound. As recent trends have shown, if mortgage rates ease, pent-up demand will likely break loose, sparking positive activity in the housing market.

    Home values increased for the second straight month, with a slight 0.3% uptick from February to March. Cotality Chief Economist Selma Hepp said in her report that the national housing market is currently caught in a crosscurrent of pent-up demand and affordability challenges.

    “The housing market is currently stuck in a holding pattern,” said Hepp. “Although housing inventories have been on the rise in many markets, broad discounting is still rare, keeping prices high. In fact, asking prices of newly listed homes continue to trend more than 2% above closing prices, suggesting that very few sellers are budging on their expectations.”

    Read More

  • Freddie Mac releases April fixed-mortgage rates

    Freddie Mac releases April fixed-mortgage rates

    According to Freddie Mac, the 30-year fixed-rate mortgage rate (FRM) averaged 6.34% in April, 16 basis points (bps) higher than March. The average 15-year rate also increased by 13 bps to 5.69%. Despite the recent increases, both the FRM and average 15-year rates remain 39 bps and 21 bps lower than a year ago, respectively.

    Mortgage rates increased last month as ceasefire negotiations remain inconclusive. At its latest meeting, the Federal Reserve (Fed) held the federal funds rate unchanged at 3.5% to 3.75%, as inflation remains elevated alongside continued economic expansion. In other news, the Fed announced that Jerome Powell’s term as Chair will end next month and that he will remain on the Board of Governors.

    Read More 

  • Rise in new home sales sparks life in housing market

    Rise in new home sales sparks life in housing market

    According to newly released data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built single-family homes rose 7.4% in March, to a seasonally adjusted annual rate of 682,000 units. The pace of new home sales is up 3.3% from 2025, marking a positive shift in housing market conditions.

    “An uptick in new home sales reflects improving demand conditions, supported by a modest pullback in mortgage rates and ongoing supply constraints in the existing home market,” said NAHB Chairman Bill Owens, a homebuilder and remodeler from Worthington, Ohio. “Builders are gradually increasing production, but elevated construction costs and labor shortages continue to limit the pace of expansion.”

    “Looking ahead, the rise in new home sales points to a modest strengthening in residential construction activity in the near term,” said Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis.

    Read More

  • Housing’s share of the GDP falls below 16%

    Housing’s share of the GDP falls below 16%

    According to the most recent GDP estimates from the Bureau of Economic Analysis, Q1 of 2026 recorded housing’s share of the economy at 15.9%. This is reportedly the lowest share since 2019 and it is down .6% from a year ago. Residential Fixed Investment (RFI) was 3.7% of the economy, recording a $1.2 trillion seasonally adjusted annual pace. While the single-family RFI fell 8.2%, the multifamily RFI rose 1.9%.

    “Residential construction, measured by residential fixed investment, fell at its fastest pace in over three years, while household expenditures on housing services continued to remain steady,” said Jess Wade, economist and director of tax and trade policy analysis at the National Association of Homebuilders. “However, the housing share of GDP lagged during the post-Great Recession period due to underbuilding, particularly in the single-family sector.”

    Read More 

  • Montana leads the nation in increasing housing supply

    Montana leads the nation in increasing housing supply

    On April 29, 2026, Montana Governor Greg Gianforte announced that a new report from the National Association of Home Builders revealed Montana is leading the nation as the state with the highest year-over-year increase in single-family home permits. Gains in the housing supply ranged from 25.5% in Montana to 0.4% in Washington.

    “In Montana, we are seeing the results of our work to increase the supply of affordable, attainable housing,” said Gianforte. “By streamlining local government permitting, homebuilders are able to more quickly respond to the demands of our growing communities.”

    Read More

  • Mortgage rates average 6.30%

    Mortgage rates average 6.30%

    On April 30, 2026, Freddie Mac released the results of its Primary Mortgage Market Survey, showing the 30-year fixed-rate mortgage (FRM) averaged 6.30%, up from last week’s average of 6.23%. In April 2025, the 30-year FRM averaged 6.76%.

    “As rates had modestly declined the last few weeks, purchase demand has accelerated with purchase applications rising to over 20% above a year ago,” said Sam Khater, Freddie Mac’s Chief Economist. “It is clear that purchase demand continues to hold up as prospective buyers react to both modestly lower rates and more inventory to choose from than the last few years.”

    Read More

Exclusive Feature