Existing home sales were at a 30-year low at the end of 2024 due to high home prices, interest rates, property taxes, and insurance premiums, according to the recently released State of the U.S. Housing Market 2025 report by the Joint Center for Housing Studies of Harvard University.
Single-family home construction rose 7% in 2024 to 1.01 million, and the average seasonally adjusted annualized rate of construction grew to 1.02 million through the first quarter of 2025. Despite this slight rise in Q1, increased housing costs due to a lack of existing home sales, high interest rates, elevated construction costs, and tariff concerns may hinder sales through the end of 2025.
Developers completed 35.1% more multifamily units in 2024 at 608,000, the highest in nearly 40 years. However, due to interest rates and the newly available supply, developers broke ground on 25% fewer units at 354,000 in 2024 compared to the previous year.
For the third consecutive year, the median size of new single-family homes shrunk. Home sizes fell 2.3% from 2023 to 2,150 square feet. See Harvard