Harvard’s Joint Center for Housing Studies recently released their annual State of the Housing Report – released annually since 1988. They say that housing markets continue to cool as higher costs weigh on both homeowners and renters. In addition they say total household growth is likely to slow in the coming few years, in part because much of the pent-up demand for household formation among young adults has been released, and also because of deteriorating affordability and slowing population growth, the primary long-term driver of household growth.
“In both the for-sale and rental markets, housing demand softened and markets cooled by early 2023 in response to rising interest rates and deteriorating affordability…”
“On the for-sale side, home sales and construction levels have declined while rental markets are experiencing sharply reduced rent growth and rising vacancy rates. Nevertheless, home prices and rents remain elevated from pre-pandemic levels, leaving millions…struggling with housing cost burdens…”