New Jersey Real Estate Report

There’s a spark of good news for the housing market as 2025 draws to a close: Pending home sales shot up by more than 3% in November, after rising nearly 2.5% the month before. The National Association of Realtors reports those numbers, which count signed contracts that are expected to close over the next four to six weeks.

Existing home sales have also been trending higher for the past three months, and the growth of home prices has been moderating — just 1.2% year-over-year in November.

So, affordability is improving, there’s a little bit more inventory available for sale, mortgage rates have trended lower over the year. For a change, the housing news is not all gloom and doom.

“A slight surge in pending home sales — it is a promising sign, the best increase on a seasonal basis since 2023,” said Guy Cecala at Inside Mortgage Finance.

Especially because the market since then looked like a “housing market stuck in the mud,” said Cecala.

Homes and mortgages haven’t seemed affordable for most would-be homebuyers for a while, said Edward Pinto at the American Enterprise Institute. He points out, since 2019, “House prices went up something like 30 or 40%, and wage growth was something like 11%. And so, we ended up with housing becoming much less affordable,” he said.

But by the end of this year, “House-price appreciation, adjusting for consumer prices, [was] actually down 0.5% to 1%,” Pinto said.

Plus, he expects more homes to come onto the market, putting the brakes on future home-price increases.

There’s another central figure in the affordability equation: mortgage rates. The 30-year-fixed rate peaked near 8% two years ago. Since mid-October, it’s been hovering around 6.2%, said Cecala.

“Mortgage rates are moving in the right direction, even if a lot slower than any of us anticipated,” he said.

Cecala is expecting two to three more interest rate cuts from the Federal Reserve in 2026, which he thinks will bring mortgage rates down further.

“I think we need to get under 6% before we see any meaningful increase in home-buying activity,” he said.

Posted in Housing Bubble, National Real Estate | 66 Comments

Winners and Losers

Posted on December 28, 2025 by grim

From the Washington Post:

Bankruptcies soar as companies grapple with inflation, tariffs

Corporate bankruptcies surged in 2025, rivaling levels not seen since the immediate aftermath of the Great Recession, as import-dependent businesses absorbed the highest tariffs in decades.

At least 717 companies filed for bankruptcy through November, according to data from S&P Global Market Intelligence. That’s roughly 14 percent more than the same 11 months of 2024, and the highest tally since 2010.

Companies cited inflation and interest rates among the factors contributing to their financial challenges, as well as Trump administration trade policies that have disrupted supply chains and pushed up costs.

But in a shift from previous years, the rise in filings is most apparent among industrials — companies tied to manufacturing, construction and transportation. The sector has been hit hard by President Donald Trump’s ever-fluid tariff policies — which he’s long insisted would revive American manufacturing. The manufacturing sector lost more than 70,000 jobs in the one-year period ending in November, federal data shows.

Consumer-oriented businesses with “discretionary” products or services, such as fashion or home furnishings, represented the second-largest group. This contingent usually tops the list and includes many retailers, and its retrenchment is a signal that inflation-weary consumers are prioritizing essentials.

The S&P data reflects both Chapter 11 and Chapter 7 filings. In the former, also known as a reorganization, the business goes through a court-administered process to restructure its debts while it continues to operate. Under Chapter 7, the company closes down, and its assets are sold off.

Economists and business experts say the trade wars have pressured import-heavy businesses, which are reluctant to raise prices by too much for fear of alienating consumers. The White House did not respond to requests for comment.
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Among the total was a surge of “mega bankruptcies,” or filings by companies with more than $1 billion in assets, during the first half of 2025. According to the economic consultancy Cornerstone Research, there were 17 such bankruptcies from January through June, the highest half-year number since the covid-19 outbreak in 2020. Consumer discretionary businesses, including retailers At Home and Forever 21, accounted for several of those filings.

Posted in Crisis, Economics | 67 Comments

Who is going to blink first?

Posted on December 26, 2025 by grim

From Redfin:

The U.S. Housing Market Has 37% More Sellers Than Buyers—More Than Double Last Year’s Gap

There were an estimated 37.2% more home sellers than buyers in the U.S. housing market in November (or 529,770 more, in numerical terms)—the largest gap in records dating back to 2013 aside from this summer. That’s up from 35.6% a month earlier and 17% a year earlier. The gap has been hovering above 35% since April.

We define a market where there are over 10% more sellers than buyers as a buyer’s market and a market where there are over 10% fewer sellers than buyers as a seller’s market. A market where the gap is plus or minus 10% is considered a balanced market. By this definition, it has been a buyer’s market since May 2024.

When sellers outnumber buyers, buyers typically hold the negotiating power because they have a lot of options to choose from. That’s why a market with a lot more sellers than buyers is considered a buyer’s market. Of course, it’s only a buyer’s market for those who can afford to buy—many Americans have been priced out of the housing market as affordability has eroded.

“A modest improvement in housing affordability could bring some homebuyers off the sidelines in 2026, which could narrow the gap between homebuyers and sellers,” said Redfin Senior Economist Asad Khan. “But the housing market is likely to remain in buyer’s market territory for the foreseeable future, with sellers cutting prices or offering concessions to lure buyers.”
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The number of homebuyers in the U.S. housing market dropped 2.5% month over month in November to an estimated 1.43 million. That’s the biggest monthly decline since April 2025 and the lowest level on record aside from April 2020, when the coronavirus pandemic brought the housing market to a halt. The number of buyers fell 9.4% year over year.

Sellers have also been retreating, but not as quickly. The number of sellers in the market fell 1.4% month over month to an estimated 1.95 million—the largest decline since June 2023 and the lowest level since February. The number of sellers rose 6.2% year over year.

Buyers are backing off due to high housing costs and economic uncertainty. Sellers, many of whom are buyers themselves, are backing off in response to lackluster demand for their homes. Some sellers are delisting after watching their homes sit on the market for months with zero bites from buyers, while others are choosing not to list at all after seeing their neighbor’s house sell for under the asking price.

Posted in Demographics, Economics, Housing Bubble, National Real Estate | 75 Comments

Uncertainty about ’26

Posted on December 24, 2025 by grim

From Resiclub:

Zillow updates its home price forecast across over 400 housing markets

Zillow economists just published their updated 12-month forecast, projecting that U.S. home prices—as measured by the Zillow Home Value Index—will rise +2.0% between November 2025 and November 2026.

Heading into 2025, Zillow’s 12-month forecast for U.S. home prices was +2.6%. However, many housing markets across the country softened faster than expected, prompting Zillow to issue several downward revisions. By April 2025, Zillow had cut its 12-month national home price outlook to -1.7%.

In the second half of this year, Zillow began upgrading its forecast. In August, it revised its 12-month outlook to +0.4%. In September, the forecast increased to +1.2%, and in October Zillow upgraded its 12-month national home price forecast to +1.9%. In November, Zillow slightly downgraded its 12-month outlook to +1.5%. This month, however, Zillow revised its 12-month outlook for U.S. home price growth back up, just a tad, to +2.0%.

While Zillow’s national home price forecast is no longer negative—it isn’t exactly bullish either. They’re calling for a soft national housing market in 2026, one where national housing affordability may improve slightly as U.S. income growth outpaces U.S. home price growth.

Posted in Economics, Housing Bubble, National Real Estate | 90 Comments

Money to spare

Posted on December 23, 2025 by grim

From MPA:

Luxury home prices soften as sales speeds split across US

National luxury listing prices edged down again in November even as some of the country’s priciest enclaves saw homes sell faster, underscoring how local forces have continued to outweigh any single national narrative for high-end borrowers and their brokers.

Realtor.com’s latest Luxury Housing Report showed the 90th‑percentile “entry‑level luxury” threshold slipping to $1,199,977 in November, down 2.3% year over year, while the 99th‑percentile ultraluxury bar ticked up modestly to $5,490,492.

Nationally, million‑dollar listings made up 12.8% of inventory and the median luxury home spent 78 days on market, flat from a year earlier, even as individual metros diverged sharply.

“Luxury home dynamics are increasingly driven by local factors rather than national trends,” Antony Smith, senior economist at Realtor.com, said.

“Some high-cost metros are experiencing brisk demand and fast turnover, while others face slower sales even at elevated price points. Understanding these local dynamics is key for both buyers and sellers in today’s luxury market.”

San Jose–Sunnyvale–Santa Clara, Calif., led the country with top‑tier homes selling in a median of 56 days, while Riverside–San Bernardino–Ontario, Calif., and the Washington, D.C., metro all saw median selling times under two months for the top 10% of listings.

By contrast, Bend, Ore., recorded a 146‑day median for luxury listings, the slowest in the nation, with Heber, Utah, and Kahului–Wailuku, Hawaii, also among the laggards despite eye‑watering thresholds starting above $3.6 million.

Naples–Marco Island, Fla., stood out as a split story for borrowers and brokers. The market’s luxury threshold sat near $3.50 million, slightly lower than a year earlier, but high‑end homes sold 23.5% faster as inventory remained plentiful and post‑hurricane rebuilding after Hurricane Milton reshaped demand in one of Florida’s most closely watched coastal markets.

Broader luxury trends have remained uneven. A recent Redfin analysis found US luxury home prices rose about 5% in the third quarter of 2025, roughly twice the pace of non‑luxury homes, as cash‑heavy buyers used high‑end real estate as a safe place to park their money amid economic uncertainty.

Posted in Demographics, Economics, Housing Bubble, National Real Estate | 70 Comments

Time to go back home

Posted on December 22, 2025 by grim

From the Daily Mail:

The great work-from-home dream is over as America’s hottest pandemic housing market is now one of its biggest losers

As pandemic lockdowns sent Americans fleeing for warm-weather locales where they could take Zoom meetings in shorts and flip-flops, Florida emerged as one of the hottest destinations for the remote-work crowd.

Now, these employees have been called back to the office in droves — forcing them to abandon their sun-drenched homes while property values tank.

Florida dominated a year-end list of metro areas nationwide that saw the steepest year-over-year median home value losses — and experts predict it’s only going to get worse.

The Sunshine State claimed six out of 10 spots on Realtor.com’s report, which found the North Port-Bradenton-Sarasota area to be the hardest hit.

The Gulf Coast metro saw its median home price drop 8.6 percent over last year, or a whopping $36,423, to a median listing price of $478,800.

‘During the pandemic, many of these areas saw home prices shoot way up because there was so much demand and so many people were able to work remotely,’ Sarasota real estate agent and Ron Myers, owner of Ron Buys Florida Homes, told the Daily Mail.

‘A big part of the problem in this area is people from New York and up North have to move back for work and there hasn’t been an increase in value in their homes since the pandemic, in fact there’s been a drop,’ he added.
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‘Many people moved here during the pandemic and have to go back to the office, and that’s out of Florida,’ Katrina Allison, a local real estate broker in Cape Coral, told the Daily Mail. ‘In the meantime, their houses have lost value.’
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Spaniak explained that many people who bought homes for remote work ended up with a property that’s now a burden, as insurance and property taxes have increased while housing prices plummeted.

‘Sellers need to figure out if they’ll take a lower a price because the market is not going back up anytime soon,’ she said, predicting that things are going to hit rock bottom in the new year.

‘It’s only going to get worse,’ Spaniak continued.

Posted in Demographics, Economics, Employment, National Real Estate | 38 Comments

Not by enough to signal a meaningful turnaround

Posted on December 20, 2025 by grim

From Reuters:

US existing home sales edge up in November as mortgage rates ease

U.S. existing home sales increased modestly in November amid an easing in mortgage rates, but economic uncertainty is keeping potential buyers on the sidelines.

The report from the National Association of Realtors on Friday also showed the inventory of previously owned homes fell from October to an eight-month low, limiting choices for those looking to buy. Though housing supply typically decreases heading into winter, inventory growth has slowed on a year-over-year basis, likely in response to sluggish demand. But limited supply could prevent an outright decline in home prices.

“Big headwinds remain for housing market activity,” said Oliver Allen, senior U.S. economist at Pantheon Macroeconomics. “The recovery in the supply of existing homes for sale seems to have stalled over the past few months. The weak labor market will limit the number of households that are confident enough to move, and measures of affordability remain stretched.”

Home sales increased 0.5% last month to a seasonally adjusted annual rate of 4.13 million units, the NAR said. Economists polled by Reuters had forecast home resales would rise to a rate of 4.15 million units.

Sales surged 4.1% in the Northeast, which accounts for a small share of the housing market. They increased 1.1% in the densely populated South, but fell 2.0% in the Midwest, regarded as the most affordable region. Sales were unchanged in the West.

Home sales declined 1.0% in November on a year-over-year basis.

The rate on the popular 30-year fixed-rate mortgage plunged from 7.04% in mid-January to 6.19% at the end of November, data from mortgage finance agency Freddie Mac shows. It has, however, made no further improvement, averaging 6.21% this week.
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“The existing home sales figures suggest that the drop in mortgage rates in recent months has nudged demand up somewhat, but not by enough to signal a meaningful turnaround,” said Stephen Stanley, chief U.S. economist at Santander U.S. Capital Markets.

Posted in Economics, Housing Bubble, Mortgages, National Real Estate | 93 Comments

It’s different here

Posted on December 19, 2025 by grim

From New Jersey Digest:

Why North Jersey Real Estate Will Remain Hot in 2026

The housing market across the Northeast has been hot for much of this entire year, though signs now point to a more measured market. One exception to this trend is the North Jersey area, where the momentum shows no current signs of letting up. Towns with strong fundamentals (location, schools, safety, commuter access) are expected to remain hot well into 2026. Ridgewood in particular stands out as an example of why demand in North Jersey is likely to remain strong.

Why is this happening? Because rather than being driven purely by speculation the North Jersey market is being increasingly driven by long-term lifestyle and stability.

So why is the market in North Jersey holding up? First, let’s talk about North Jersey’s biggest asset when it comes to the housing market: geography. The area’s proximity to New York makes the region very attractive to buyers who want suburban space while still being close to one of the biggest job markets in the world. This is unlikely to change in 2026, or even in the foreseeable future.

Commuter convenience remains a major draw. New Jersey Transit rail lines and major highways offer relatively easy and reliable access to Manhattan, making towns like Ridgewood a great choice for professionals with hybrid schedules.

North Jersey is also set apart by having well-established town centers. Unlike newer suburban areas, many Bergen County towns have walkable downtowns with access to restaurants, retail, parks, and other amenities — all catnip to prospective buyers.

The area also has highly regarded public schools, which is always a key factor in desirability. Even as affordability becomes more of a challenge, families consistently prioritize areas with good schools — which mean home values stay strong even when the market slows.

Posted in Demographics, Economics, New Jersey Real Estate | 86 Comments

What’s 2026 got for us?

Posted on December 18, 2025 by grim

From Yahoo Finance:

Housing market predictions for 2026: What buyers, renters, and homeowners can expect

If you’ve felt sidelined by the real estate market in years past, it’s fair to wonder whether 2026 finally looks different or whether it’s just another version of the same frustrations. The short answer is that the market does look calmer heading into 2026, but not dramatically cheaper or easier. Expert housing market predictions for 2026 suggest a market where preparation, flexibility, and local conditions are more crucial than chasing the perfect moment to buy, sell, or relocate.
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As of Dec. 11, 2025, the average 30-year fixed mortgage rate sat at 6.22%, according to Freddie Mac. That’s progress compared to rates in 2023 and early 2024, but still expensive relative to the rock-bottom pandemic rates that are now in the rearview mirror.

Looking ahead to 2026, expert mortgage rate predictions largely agree on the direction, but not on the specifics. Many expect mortgage rates to go down in 2026. Zillow and Realtor.com point to mortgage rates in the low- to mid-6% range as inflation continues to cool. In its November Housing Forecast, however, Fannie Mae predicts that the 30-year rate will hit 5.9% by the end of next year.

What’s striking is how restrained those projections are. No one is talking about a return to mortgage rates in the 3% range. Not seriously, anyway. That era appears to be over, at least for now.
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Most major housing forecasts indicate a market that’s slowing down, rather than reversing. Zillow’s latest outlook projects modest price growth, with national home values expected to rise about 1.2% in 2026. Redfin’s forecast falls within a similar range, predicting roughly 1% year-over-year growth as part of a gradual reset rather than a correction.

The reason prices remain resilient comes back to supply. Even as listings improve from recent lows, housing inventory still hasn’t returned to pre-pandemic levels.

That shortage isn’t uniform. In some markets, inventory has rebounded faster. In other areas, particularly across parts of the Northeast and Midwest, Realtor.com data shows listings still lag well behind 2019 levels. In those areas, competition hasn’t disappeared, even if it’s less intense than it once was.
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This is where many 2026 housing market predictions begin to fall apart a bit.

On paper, the housing market already appears more favorable to buyers than it did a few years ago. Realtor.com’s November 2025 market data shows the typical home spent about 64 days on the market, roughly three days longer than a year earlier — the 20th straight month of year-over-year increases in time on market. Meanwhile, Redfin’s October national housing data highlights a market where sales and listings have barely moved, a sign that homes aren’t selling as quickly as they did during the pandemic-era frenzy.

That sounds like a buyer’s market. It isn’t — at least not everywhere.

Posted in Economics, National Real Estate | 144 Comments

Will it unlock the market?

Posted on December 17, 2025 by grim

From the Realtors:

Could Capital Gains Tax Cuts Lower Home Prices? 2 Proposals Are on the Table

There are two proposals driving the capital gains debate in Washington right now.

The first is a bill from Rep. Marjorie Taylor Greene (R-Georgia) that would eliminate capital gains taxes entirely on primary-residence sales.

“I just think this is a great gift for the American people, and it’s very core to what we were founded on,” Greene told Realtor.com® in an exclusive interview in July.

While President Donald Trump voiced his support for the measure, the proposal’s future has become unclear after the congresswoman announced that she’ll be departing Congress at the end of the year. That has put the more targeted More Homes on the Market Act, from Rep. Jimmy Panetta (D-California) back at center stage.

Panetta’s bill would raise the federal capital gains exclusion on primary-home sales and then index it to inflation, so the threshold moves with the housing market instead of staying frozen for decades.

It’s an elegant solution for a threshold that has been frozen in place since 1997, when the median home price was $145,000, and Netscape was America’s preferred web browser.

While Greene’s approach is more blunt, Panetta’s would still have a significant effect, roughly doubling the current exemption to $500,000 for individuals and $1 million for couples, restoring the law’s original intent to protect everyday homeowners, not penalize them.
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For those skeptical that a simple tax reform could lead to more homes on the market and lower home prices, it helps to look at the last time the capital gains tax was reformed.

The 1997 Taxpayer Relief Act replaced a one-time capital gains exclusion for homeowners over age 55 with the current thresholds.

The shift wasn’t radical, but it did yield results: Researchers found that lowering the tax friction encouraged more people to sell, especially those near the new exemption threshold.

Around the same time, the repeal of the age-based exclusion also spurred mobility. Households in their early 50s, many of them empty nesters or downsizing after a divorce, became significantly more likely to move, according to another analysis. In targeted groups, mobility rose between 22% and 31%.

The people who moved weren’t random, either. They were often in high-appreciation markets, facing a higher expected tax bill if they stayed put, and primed to trade down.

In other words, they looked a lot like today’s long-tenured owners in overheated metros, people sitting on large gains and grappling with whether now is the right time to sell.

Posted in Economics, Housing Bubble, National Real Estate, Politics, Property Taxes | 57 Comments

Bye Bye AC

Posted on December 16, 2025 by grim

From the NY Post:

3 NYC casinos get licenses for Vegas-style gaming – with first to open as early as March

It’s a Big Apple casino jackpot.

Three high-profile casino projects got their final approval Monday from the state’s gaming commission – the last hurdle to bring Las Vegas-style gambling to the city.

The projects are Mets owner Steve Cohen’s and Hard Rock’s $8.1 billion plan to bring a gaming complex near Citi Field, Genting-Resorts World’s casino at Aqueduct Racetrack and Bally’s plan to open a casino on President Trump’s former golf course in the Bronx.

“The three approved casinos will generate billions of dollars for the MTA and education, create tens of thousands of jobs and deliver real benefits to their surrounding communities,” Gov. Kathy Hochul said in a statement.

“Each of the projects made significant commitments to their communities and to New York State, and the Gaming Commission was clear that they will hold these projects accountable and make sure they keep their promises.”

Genting-Resorts could offer live table games as early as March — because they already operate slots at Aqueduct and have an operational gaming facility.

Posted in NYC, Politics, South Jersey Real Estate | 86 Comments

Trouble in ’26?

Posted on December 15, 2025 by grim

From the Daily Mail:

US home prices turn negative as crash begins — a warning sign the real estate market is cracking

After years of eye-watering gains, America’s housing market just hit a chilling milestone: prices have officially gone negative.

What sounds like welcome news for frustrated buyers is actually a warning sign for the wider economy.

Falling prices make homeowners feel poorer, pull down household spending, drag on confidence, and can trigger deeper trouble in markets already stretched by high mortgage rates and shrinking savings.

Fresh daily data from Parcl Labs shows prices are now slightly below where they were a year ago, and have fallen 1.4 percent in the last three months alone. It’s not a crash, but it’s the first national decline since mid-2023.

The dip is nothing like the 27 percent crash during the Great Recession in 2008, but analysts say the ingredients for a broad slowdown are now falling into place.

‘The sharp increase in mortgage rates in 2022 and 2023 created an affordability shock,’ said Jason Lewris, co-founder of Parcl Labs. ‘Buyers were priced out, sales volumes dropped, and sellers had to adjust expectations.’

As well as high rates, experts say the drop is being driven by weaker demand, and more homes sitting unsold as stretched buyers back away.

That shift is beginning to show up in local markets. Austin is now down 10 percent year-on-year, Denver is down 5 percent, Tampa and Houston are both down 4 percent, and Atlanta and Phoenix have slipped about 3 percent.

Other areas, including Cleveland, Chicago and New York City, are still rising — as these areas have more demand than supply to offer homebuyers.

Posted in Economics, Housing Bubble, National Real Estate | 108 Comments

Where to live before you die

Posted on December 13, 2025 by grim

From AARP:

AARP’s Top 100 Places to Live for Older Adults

What cities and towns have the qualities older adults value, such as a good job market, walkability and affordable housing? AARP’s Livability Index platformevaluates communities based on these criteria and more to come up with its annual list of best places to live.

Get healthy, stay healthy in very large communities: Population 500,000+

6. New York, New York
8. Nassau, New York
12. Hempstead, New York
15. Hudson County, New Jersey
17. Philadelphia, Pennsylvania
20. Delaware County, Pennsylvania
21. Union County, New Jersey

Get involved in large communities: Population 100,000 to 499,999

8. North Hempstead, New York
17. Cumberland County, Pennsylvania
23. Dauphin County, Pennsylvania
24. Pittsburgh, Pennsylvania
25. Elizabeth, New Jersey

Little need to drive in many of these midsize communities: Population 25,000 to 99,999

1. Cliffside Park, New Jersey
2. Fort Lee, New Jersey
9. Harrisburg, Pennsylvania
11. Bergenfield, New Jersey
12. Union City, New Jersey
14. Lodi, New Jersey
17. Hoboken, New Jersey
20. Long Beach, New York
21. Valley Stream, New York

Great places to get to know your neighbors: Population 5,000 to 24,999

1. Great Neck Plaza, New York
10. Willison Park, New York
12. Fairview, New Jersey
13. Manorhaven, New York
15. Mechanicsburg, Pennsylvania
16. Wallington, New Jersey
23. New Cumberland, Pennsylvania

Posted in Demographics, Economics, National Real Estate | 62 Comments

It was easier back then

Posted on December 12, 2025 by grim

From Zoocasa:

Why the “Good Ole Days” of Housing Are Gone: Tracking Affordability From 1965 to 2025

In 1965, Gatorade was invented, The Beatles’ “Help!” topped the charts, and The Sound of Musicpremiered. Beyond the pop culture milestones, that year also marked the last time you could buy a home for under $20,000.

Fast forward sixty years, and a lot has changed in the housing market. Not only do homes cost significantly more, but the median annual income now covers a smaller percentage of the total home price.

So, it’s not just nostalgia that makes everything seem cheaper in the past; the data supports this. Zoocasa dived into the numbers to see exactly how much the median family income and the median sales price of a new home have changed from 1965 to 2025. And one thing is clear: housing affordability has deteriorated.

In 1965, the median sales price of a new home was just $19,800. That’s approximately $206,000 in today’s dollars, which is still only half the price of a new home in 2025.

But the affordability gap widens further when comparing income-to-price ratios. Family household incomes in 1965 were equivalent to 34.8% of the total cost of a new home, while in 2025, its equivalent to just 26.4% of a new home. So what caused this nearly 10% drop?

For a long time, income growth was steadily rising. Between 1955 and 1985, the growth rate accelerated dramatically in each decade. The median family income increased by 56.4% from 1955 to 1965, then by 99.3% in the following decade, and peaked with a 102.2% increase from 1975 to 1985.

However, after 1985, income growth slowed considerably. The rate dropped from 48.6% in 1985-1995 to 40.7% in 1995-2005. Over the next ten years (2005 to 2015), the median family income increased by just 24.4% to $72,165. Most recently, from 2015 to 2025, growth recovered modestly, rising by 50.5%.

At the same time, new home prices skyrocketed. In nearly every decade, new home price growth outpaced income growth, contributing to the widening gap.

From 1955 to 1965, new home prices rose by 69%, only slightly ahead of the 67.9% increase in income. The following decade (1965 to 1975) marked the last time incomes exceeded new home price growth until 2015, rising by 99.3% while new home prices grew by 97%. After 1975, home price growth dominated until 2015. Home prices surged, posting decade increases of 116% (1975-1985), 59% (1985-1995), and 75% (1995-2005).

Though the pace of home price growth has slowed in the past two decades, it will be a while before the affordability gap can close, particularly as other costs are simultaneously rising.

Posted in Demographics, Economics, Employment, Housing Bubble, National Real Estate | 105 Comments

Predictions 2026!

Pending home sales tick up

Pending home sales are on the rise, which could be good news for the new year