Market Trends for 2025

According to Zillow’s latest insights, the U.S. real estate market is set for increased activity in 2025, with a substantial rise in housing inventory. This shift should provide homebuyers with enhanced negotiation capabilities, despite likely fluctuations in mortgage rates that may complicate the buying process.

Alana Mann, President of The Statesman Group of Companies, highlighted these evolving dynamics during a recent appearance on LiveNOW from FOX.

Housing Affordability Insights

A comprehensive report by Realtor.com has shed light on the ongoing housing crisis, detailing the states demonstrating the best balance of housing affordability and supply. Notably, South Carolina emerged as the leading state with an impressive ‘A’ rating for its effective construction efforts outpacing demand.

Top Performers in Housing Affordability

The report recognized several states as strong performers:

• South Carolina: A
• Iowa: A-
• Texas: A-
• Indiana: B+
• North Carolina: B+

These states are predominantly located in the South and Midwest, where land availability and affordable pricing contribute to their high ratings. In contrast, areas like the Northeast and West Coast scored poorly, with states such as California and New York facing severe challenges due to soaring housing costs and restrictive zoning regulations.

The Challenges Ahead

Damian Eales, CEO of Realtor.com, remarked, “The only real solution to housing affordability is to build more homes.” His statements echo a consistent theme of the report, emphasizing the need for increased construction to combat rising housing costs and inventory shortages in various regions.

Despite the progress in some states, many regions remain trapped in a cycle of high prices and limited options, necessitating immediate action from federal, state, and local governments to address these gaps.

Summary of State Grades

1. South Carolina: A
2. Iowa: A-
3. Texas: A-
4. Indiana: B+
5. North Carolina: B+
6. South Dakota: B
7. Nebraska: B
8. Arkansas: B
9. Georgia: B
10. Florida: C+
11. Oklahoma: C+

For the full detailed report, visit this source.

The Future of Homeownership

In 2024, homebuying became slightly more affordable, with households needing to allocate 41.8% of their earnings to cover housing costs for the median-priced home. This slight improvement from the previous year’s 42.2% still reflects ongoing affordability issues that exceed pre-2020 standards.