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A Turning Point for the U.S. Housing Market.
- La Chapulina Verde
- Nov 3
- 2 min read
A slower housing market may finally bring a long-awaited balance between prices and affordability in the United States.
The U.S. housing market is slowing down after years of rapid growth. Real estate analyst Nick Gerli, founder of Reventure App, says the country has entered a “deflationary vortex,” meaning that prices and rents are rising much more slowly, and in some places, they are already starting to fall.
After a long period of strong demand, buyers are now stepping back. Homes remain expensive, borrowing money is costly, and insurance rates have climbed, making ownership harder to afford. Because of this, the number of houses for sale has grown. In August, there were more than 2.1 million homes on the market, 10.5 percent more than a year earlier, while sales fell by 2.2 percent. Houses are also taking longer to sell, and price growth has nearly stopped. The average home price was $439,198 in August, just 1.5 percent higher than last year, one of the smallest increases in years.
States that saw large booms during the pandemic, like Florida and Texas, are now cooling. Florida’s median home price dropped slightly by 0.13 percent, and Texas saw a 0.59 percent fall. Analysts call this a sign of “deflation,” when prices begin to decline instead of rise. Meanwhile, cities in the North and Midwest, where housing remains limited, are still experiencing small increases.
The rental market is following the same pattern. In cities such as Austin, Fort Myers, and Colorado Springs, rents have dropped between 12 and 18 percent in three years. In other areas like Hartford and Chicago, rents continue to grow, but more slowly.
For many families, affordability remains the biggest challenge. Homeowners now spend about 37 to 38 percent of their income on mortgage payments, one of the highest levels in history. Despite the challenges, some experts believe this cooling phase might help balance the market and give more Americans the chance to finally buy a home.
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