J.P. Morgan’s 2025 U.S. Housing Market Outlook projects modest growth, with home prices expected to rise by approximately 3%. This subdued pace is influenced by persistent high mortgage rates, anticipated to ease only slightly to 6.7% by year-end, and a supply-demand imbalance.  

Key Factors Influencing the Market:

• Mortgage Rates and Demand: Elevated mortgage rates continue to suppress buyer demand. Over 80% of homeowners have mortgages significantly below current rates, discouraging them from selling and contributing to limited housing inventory.​
• Housing Supply Constraints: While new home listings have increased, overall supply remains below historical averages. Builders are slowing down multifamily construction due to rising financing costs and regulatory challenges.​
• Policy Implications: Potential policy changes under the Trump administration, such as reducing immigration and streamlining zoning processes, could impact housing affordability and labor supply in construction.​

In summary, the U.S. housing market in 2025 is expected to experience slow growth, influenced by high mortgage rates, limited supply, and evolving policy considerations.​ Contact us today to learn more about the current housing market and how we may help you with your next home.