Preliminary 2025 Housing Forecasts
Towards the end of each year, I collect some housing forecasts for the following year - and also provide my own outlook. Several more forecast will be available in early December.
It is early, but for comparison, new home sales in 2024 will probably be around 705 thousand, up from 666 thousand in 2023.
Total housing starts will be around 1.35 million in 2024, down from 1.42 million in 2023.
Existing home sales will be around 4.0 million in 2023, down from 4.1 million in 2023.
As of August, Case-Shiller house prices were up 4.2% year-over-year, but the year-over-year change will likely decrease a little further over the next few reports.
The table below shows several early forecasts for 2025:
Here are two of these forecasts. The Fannie Mae forecast is available here:
From the NAHB here:
A few points from these early forecasts:
Forecasters expect house prices to increase next year in the low-to-mid single digits.
Everyone expects multi-family starts to stay depressed in 2025.
Everyone expects both new and existing home sales to increase in 2025, although existing home sales are expected to remain in the low 4 million range.
I’ll have several more forecasts (and updated forecasts) in December.