In the United States, interest rates for all mortgage types started to increase in 2021. This was due to the Federal Reserve introducing a series of hikes in the federal funds rate to contain the rising inflation. In the fourth quarter of 2024, the 30-year fixed rate rose slightly, to **** percent. Despite the increase, the rate remained below the peak of **** percent in the same quarter a year ago. Why have U.S. home sales decreased? Cheaper mortgages normally encourage consumers to buy homes, while higher borrowing costs have the opposite effect. As interest rates increased in 2022, the number of existing homes sold plummeted. Soaring house prices over the past 10 years have further affected housing affordability. Between 2013 and 2023, the median price of an existing single-family home risen by about ** percent. On the other hand, the median weekly earnings have risen much slower. Comparing mortgage terms and rates Between 2008 and 2023, the average rate on a 15-year fixed-rate mortgage in the United States stood between **** and **** percent. Over the same period, a 30-year mortgage term averaged a fixed-rate of between **** and **** percent. Rates on 15-year loan terms are lower to encourage a quicker repayment, which helps to improve a homeowner’s equity.

The US residential real estate market, a cornerstone of the American economy, is projected to experience steady growth over the next decade. While the provided CAGR of 2.04% is a modest figure, it reflects a market maturing after a period of significant expansion. This sustained growth is driven by several key factors. Firstly, population growth and urbanization continue to fuel demand for housing, particularly in densely populated areas and emerging suburban markets. Secondly, low interest rates (historically, though this can fluctuate) have made mortgages more accessible, stimulating buyer activity. Thirdly, a robust construction sector, though facing challenges in material costs and labor shortages, is gradually increasing the housing supply, mitigating some of the upward pressure on prices. However, challenges remain. Rising inflation and potential interest rate hikes pose a risk to affordability, potentially dampening demand. Furthermore, the ongoing evolution of remote work is reshaping residential preferences, with a shift toward larger homes in suburban or exurban locations. This trend impacts the relative demand for various property types, potentially increasing the appeal of landed houses and villas compared to apartments and condominiums in certain regions. The segmentation of the market into apartments/condominiums and landed houses/villas provides crucial insights into consumer preferences and investment strategies. High-density urban areas will continue to see strong demand for apartments and condos, while suburban and rural areas are likely to experience a greater increase in landed property sales. Major players like Simon Property Group, Mill Creek Residential, and others are strategically adapting to these trends, focusing on both development and management across various property types and geographic locations. Analyzing regional data within the US (e.g., comparing growth in the Northeast versus the Southwest) will highlight market nuances and potential investment opportunities. While the global data provided is valuable for understanding broader market forces, focusing the analysis on the US market allows for a more granular understanding of the specific drivers, trends, and challenges within this significant segment of the real estate sector. The forecast period (2025-2033) suggests continued, albeit measured, expansion. Recent developments include: May 2022: Resource REIT Inc. completed the sale of all of its outstanding shares of common stock to Blackstone Real Estate Income Trust Inc. for USD 14.75 per share in an all-cash deal valued at USD 3.7 billion, including the assumption of the REIT's debt., February 2022: The largest owner of commercial real estate in the world and private equity company Blackstone is growing its portfolio of residential rentals and commercial properties in the United States. The company revealed that it would shell out about USD 6 billion to buy Preferred Apartment Communities, an Atlanta-based real estate investment trust that owns 44 multifamily communities and roughly 12,000 homes in the Southeast, mostly in Atlanta, Nashville, Charlotte, North Carolina, and the Florida cities of Jacksonville, Orlando, and Tampa.. Key drivers for this market are: Investment Plan Towards Urban Rail Development. Potential restraints include: Italy’s Fragmented Approach to Tenders. Notable trends are: Existing Home Sales Witnessing Strong Growth.

Mortgage interest rates worldwide varied greatly in June 2025, from less than ******percent in many European countries to as high as ***percent in Turkey. The average mortgage rate in a country depends on the central bank's base lending rate and macroeconomic indicators such as inflation and forecast economic growth. Since 2022, inflationary pressures have led to rapid increases in mortgage interest rates. Which are the leading mortgage markets? An easy way to estimate the importance of the mortgage sector in each country is by comparing household debt depth, or the ratio of the debt held by households compared to the county's GDP. In 2024, Switzerland, Australia, and Canada had some of the highest household debt to GDP ratios worldwide. While this indicator shows the size of the sector relative to the country’s economy, the value of mortgages outstanding allows to compare the market size in different countries. In Europe, for instance, the United Kingdom, Germany, and France were the largest mortgage markets by outstanding mortgage lending. Mortgage lending trends in the U.S. In the United States, new mortgage lending soared in 2021. This was largely due to the growth of new refinance loans that allow homeowners to renegotiate their mortgage terms and replace their existing loan with a more favorable one. Following the rise in interest rates, the mortgage market cooled, and refinance loans declined.

View weekly updates and historical trends for 30 Year Mortgage Rate. from United States. Source: Freddie Mac. Track economic data with YCharts analytics.

House prices grew year-on-year in most states in the U.S. in the first quarter of 2025. Hawaii was the only exception, with a decline of **** percent. The annual appreciation for single-family housing in the U.S. was **** percent, while in Rhode Island—the state where homes appreciated the most—the increase was ******percent. How have home prices developed in recent years? House price growth in the U.S. has been going strong for years. In 2025, the median sales price of a single-family home exceeded ******* U.S. dollars, up from ******* U.S. dollars five years ago. One of the factors driving house prices was the cost of credit. The record-low federal funds effective rate allowed mortgage lenders to set mortgage interest rates as low as *** percent. With interest rates on the rise, home buying has also slowed, causing fluctuations in house prices. Why are house prices growing? Many markets in the U.S. are overheated because supply has not been able to keep up with demand. How many homes enter the housing market depends on the construction output, whereas the availability of existing homes for purchase depends on many other factors, such as the willingness of owners to sell. Furthermore, growing investor appetite in the housing sector means that prospective homebuyers have some extra competition to worry about. In certain metros, for example, the share of homes bought by investors exceeded ** percent in 2025.

30 Year Mortgage Rate in the United States decreased to 6.35 percent in September 11 from 6.50 percent in the previous week. This dataset includes a chart with historical data for the United States 30 Year Mortgage Rate.

Graph and download economic data for Interest Rates and Price Indexes; Multi-Family Real Estate Apartment Price Index, Level (BOGZ1FL075035403A) from 1985 to 2024 about multifamily, real estate, family, interest rate, interest, rate, price index, indexes, price, and USA.

The industry is composed of non-depository institutions that conduct primary and secondary market lending. Operators in this industry include government agencies in addition to non-agency issuers of mortgage-related securities. Through 2025, rising per capita disposable income and low levels of unemployment helped fuel the increase in primary and secondary market sales of collateralized debt. Nonetheless, due to the sharp contraction in economic activity at the onset of the period, revenue gains were limited, but climbed in the latter part of the period as the economy has normalized. Interest rates climbed significantly to tackle significant inflationary pressures, which increased borrowing costs, hindering loan volumes but increasing interest income for each loan. However, the Fed cut interest rates in 2024 and is anticipated to cut rates in the latter part of the current year, reducing borrowing costs and providing a boost to loan volumes. Overall, these trends, along with volatility in the real estate market, have caused revenue to slump at a CAGR of 1.3% to $488.9 billion over the past five years, including an expected decline of 0.1% in 2025 alone. The high interest rate environment has hindered real estate loan demand but increased interest income, boosting profit to 15.6% of revenue in the current year. Higher access to credit and higher disposable income have fueled primary market lending over much of the period, increasing the variety and volume of loans to be securitized and sold in secondary markets. An additional boon for institutions has been an increase in interest rates, which raised interest income as the spread between short- and long-term interest rates increased. These macroeconomic factors, combined with changing risk appetite and regulation in the secondary markets, have resurrected collateralized debt trading since the middle of the period. Although institutions are poised to benefit from strong economic growth, inflationary pressures easing and the decline in the 30-year conventional mortgage rate, the rate of homeownership is still expected to fall but at a slower pace compared to the current period. Shaky demand from commercial banking and uncertainty surrounding inflationary pressures will influence institutions' decisions on whether or not to sell mortgage-backed securities and commercial loans to secondary markets. These trends are expected to cause revenue to decline at a CAGR of 1.0% to $465.4 billion over the five years to 2030.

The number of home sales in the United States peaked in 2021 at almost ************* after steadily rising since 2018. Nevertheless, the market contracted in the following year, with transaction volumes falling to ***********. Home sales remained muted in 2024, with a mild increase expected in 2025 and 2026. A major factor driving this trend is the unprecedented increase in mortgage interest rates due to high inflation. How have U.S. home prices developed over time? The average sales price of new homes has also been rising since 2011. Buyer confidence seems to have recovered after the property crash, which has increased demand for homes and also the prices sellers are demanding for homes. At the same time, the affordability of U.S. homes has decreased. Both the number of existing and newly built homes sold has declined since the housing market boom during the coronavirus pandemic. Challenges in housing supply The number of housing units in the U.S. rose steadily between 1975 and 2005 but has remained fairly stable since then. Construction increased notably in the 1990s and early 2000s, with the number of construction starts steadily rising, before plummeting amid the infamous housing market crash. Housing starts slowly started to pick up in 2011, mirroring the economic recovery. In 2022, the supply of newly built homes plummeted again, as supply chain challenges following the COVID-19 pandemic and tariffs on essential construction materials such as steel and lumber led to prices soaring.

House Price Index YoY in the United States decreased to 2.60 percent in June from 2.90 percent in May of 2025. This dataset includes a chart with historical data for the United States FHFA House Price Index YoY.

Graph and download economic data for Interest Rates and Price Indexes; Multi-Family Real Estate Apartment Price Index, Level (BOGZ1FL075035403Q) from Q4 1985 to Q1 2025 about multifamily, real estate, family, interest rate, interest, rate, price index, indexes, price, and USA.

The average price per square foot of floor space in new single-family housing in the United States decreased after the great financial crisis, followed by several years of stagnation. Since 2012, the price has continuously risen, hitting ****** U.S. dollars per square foot in 2024. In 2024, the average sales price of a new home exceeded ******* U.S. dollars. Development of house sales in the U.S. One of the reasons for rising property prices is the gradual growth of house sales between 2011 and 2020. This period was marked by the gradual recovery following the subprime mortgage crisis and a growing housing sentiment. Another significant factor for the housing demand was the growing number of new household formations each year. Despite this trend, housing transactions plummeted in 2021, amid soaring prices and borrowing costs. In 2021, the average construction cost for single-family housing rose by nearly ** percent year-on-year, and in 2022, the increase was even higher, at close to ** percent. Financing a house purchase Mortgage interest rates in the U.S. rose dramatically in 2022 and remained elevated until 2024. In 2020, a homebuyer could lock in a 30-year fixed interest rate of under ***** percent, whereas in 2024, the average rate for the same mortgage type was more than twice higher. That has led to a decline in homebuyer sentiment, and an increasing share of the population pessimistic about buying a home in the current market.

The US luxury residential market, a sector characterized by high-value properties like apartments, condominiums, villas, and landed houses, is experiencing robust growth. Driven by factors such as increasing high-net-worth individuals, a preference for larger living spaces, and a desire for premium amenities, the market exhibits a Compound Annual Growth Rate (CAGR) exceeding 3.00%. Key cities like New York, Los Angeles, San Francisco, Miami, and Washington D.C. dominate the market, attracting both domestic and international buyers. The segment encompassing apartments and condominiums currently holds the largest market share, reflecting a trend towards urban luxury living. However, the villas and landed houses segment is also demonstrating strong growth, fueled by demand for larger properties and privacy. The market faces constraints such as fluctuating interest rates, limited inventory in prime locations, and the overall economic climate. Nevertheless, the long-term outlook remains positive, with continued growth expected throughout the forecast period (2025-2033). Leading developers like Toll Brothers, D.R. Horton, and several high-end custom builders are actively shaping the market, contributing to the overall expansion and diversification of luxury housing options. This market's expansion is further influenced by evolving architectural trends emphasizing sustainability and smart-home technology. The increasing popularity of eco-friendly materials and designs, along with the integration of advanced technological features, is attracting environmentally conscious high-net-worth individuals. Furthermore, the market's regional distribution showcases a strong concentration in North America, particularly the United States, although international markets, including key regions in Europe and Asia, are also showing promising growth potential. The competitive landscape is dynamic, with both large national builders and smaller, specialized custom home builders vying for market share. This leads to innovative design and construction approaches, thereby enhancing the overall quality and appeal of luxury residential properties. Future growth will depend on maintaining a balance between catering to evolving consumer preferences, addressing market constraints, and adapting to broader economic conditions. This comprehensive report provides an in-depth analysis of the US luxury residential market, encompassing historical data (2019-2024), current estimations (2025), and future projections (2025-2033). We examine market dynamics, key players, emerging trends, and growth catalysts to offer a 360° perspective on this lucrative sector. The report is crucial for investors, developers, real estate professionals, and anyone seeking to understand the intricacies of the high-end residential landscape. High-value keywords used throughout the report include: luxury homes, luxury real estate, high-end residential, luxury condos, luxury apartments, prime real estate, US luxury housing market, luxury home builders, luxury real estate investment. Key drivers for this market are: Energy efficiency in construction, Flexibility and customization options. Potential restraints include: Limited availability of suitable land for construction, Lower quality compared to traditional construction. Notable trends are: Home Automation Becoming a Pre-requisite for Luxury Real Estate.

The U.S. mortgage market has declined notably since 2020 and 2021, mostly due to the effect of higher borrowing costs on refinance mortgages. The value of refinancing mortgage originations amounted to 112 billion U.S. dollars in the first quarter of 2025, down from a peak of 851 billion U.S. dollars in the fourth quarter of 2020. The value of mortgage loans for the purchase of a property recorded milder fluctuations, with a value of 272 billion U.S. dollars in the first quarter of 2025. According to the forecast, mortgage lending is expected to slightly increase until the end of 2026. The cost of mortgage borrowing in the U.S. Mortgage interest rates in the U.S. rose dramatically in 2022, peaking in the final quarter of 2024. In 2020, a homebuyer could lock in a 30-year fixed interest rate of under three percent, whereas in 2024, the average rate for the same mortgage type exceeded 6.6 percent. This has led to a decline in homebuyer sentiment and an increasing share of the population pessimistic about buying a home in the current market. The effect of a slower housing market on property prices and rents According to the S&P/Case Shiller U.S. National Home Price Index, housing prices experienced a slight correction in early 2023, as property transactions declined. Nevertheless, the index continued to grow in the following months. On the other hand, residential rents have increased steadily since 2000.

The Housing Affordability Index value in the United States plummeted in 2022, surpassing the historical record of ***** index points in 2006. In 2024, the housing affordability index measured **** index points, making it the second-worst year for homebuyers since the start of the observation period. What does the Housing Affordability Index mean? The Housing Affordability Index uses data provided by the National Association of Realtors (NAR). It measures whether a family earning the national median income can afford the monthly mortgage payments on a median-priced existing single-family home. An index value of 100 means that a family has exactly enough income to qualify for a mortgage on a home. The higher the index value, the more affordable a house is to a family. Key factors that drive the real estate market Income, house prices, and mortgage rates are some of the most important factors influencing homebuyer sentiment. When incomes increase, consumer power also increases. The median household income in the United States declined in 2022, affecting affordability. Additionally, mortgage interest rates have soared, adding to the financial burden of homebuyers. The sales price of existing single-family homes in the U.S. has increased year-on-year since 2011 and reached ******* U.S. dollars in 2023.

The mortgage credit interest rate is the average interest rate on mortgage loan products offered to individuals and households by the commercial banks in the country. The mortgage credit is a loan used to finance the purchase of real estate. The table shows the latest available data from the national authorities as well as the values from three months ago and one year ago. The data are updated continuously.

The North American luxury residential real estate market, encompassing villas, landed houses, apartments, and condominiums across the United States, Mexico, and Canada, exhibits robust growth potential. Driven by increasing high-net-worth individuals, a preference for upscale living, and limited inventory in prime locations, the market is projected to maintain a Compound Annual Growth Rate (CAGR) exceeding 2.00% from 2025 to 2033. The United States dominates the market share, fueled by strong economic performance in key metropolitan areas and continued demand for luxury properties in coastal regions and affluent suburbs. Mexico's luxury market is experiencing growth, particularly in resort destinations and urban centers, benefiting from both domestic and international investment. Canada's luxury sector is also showing positive momentum, driven by a thriving economy and a relatively stable political landscape in certain regions. However, challenges remain, including rising interest rates potentially dampening buyer enthusiasm and construction costs that impact affordability. The market is segmented by property type, with villas and landed houses commanding higher price points, while the condominium segment shows strong appeal among urban dwellers seeking convenience and luxury amenities. Major players like D.R. Horton, Lennar, PulteGroup, and Toll Brothers, along with prominent regional developers, continue to shape market dynamics through strategic acquisitions, innovative designs, and upscale developments. The forecast for the next decade indicates continued expansion, albeit at a moderated pace due to economic headwinds. While the impact of interest rate fluctuations remains a key factor, the underlying demand for luxury properties in desirable locations is expected to sustain market growth. Diversification of investment strategies by developers, including incorporating sustainable building practices and smart home technologies, will become increasingly crucial to attract discerning buyers. Further geographic expansion into emerging luxury markets within North America is also anticipated, driving further segmentation and market diversification. Strong competition among developers is expected to drive innovation in product offerings and customer service, adding further dynamism to this high-value sector. Recent developments include: June 2022: Three major homebuilders have paid USD 111.7 million for an 836-acre plot of unoccupied property in the West Valley, which will house up to 2,800 people. The property, located on the northwest corner of 163rd Avenue and Happy Valley Road in Surprise, is directly northeast of Lennar's current Asante master-planned community, which comprises 3,500 acres and will ultimately house more than 14,000 houses. Asante has so far seen the construction of around 1,500 residences., July 2021: Mighty Buildings, located in Oakland, has secured a USD 22 million extension to its Series B investment round. The company is on a mission to create homes using 3D printing, robots, and automation. The fresh fundraising follows a USD 40 million round announced earlier this year, bringing the company's total funding since its founding in 2017 to USD 100 million. Mighty Building's self-proclaimed objective is to build beautiful, sustainable, and cheap homes. The micro-factories, according to the company, will be able to produce 200 to 300 homes per year in locations where housing gaps exist.. Notable trends are: Emergence of the Millennial Generation in USA.

The United States home construction market, valued at approximately $700 billion in 2025, is experiencing robust growth, projected to maintain a compound annual growth rate (CAGR) exceeding 3% through 2033. This expansion is fueled by several key factors. Firstly, a persistent housing shortage, particularly in desirable urban areas like New York City, Los Angeles, and San Francisco, continues to drive demand. Secondly, favorable demographic trends, including millennial household formation and an increasing preference for homeownership, are bolstering the sector. Furthermore, low interest rates (though this is subject to change depending on economic conditions) have historically made mortgages more accessible, stimulating construction activity. However, the market isn't without its challenges. Rising material costs, labor shortages, and supply chain disruptions continue to exert upward pressure on construction prices, potentially impacting affordability and slowing growth in certain segments. The market is segmented by dwelling type (apartments & condominiums, villas, other), construction type (new construction, renovation), and geographic location, with significant activity concentrated in major metropolitan areas. The dominance of large national builders like D.R. Horton, Lennar Corp, and PulteGroup highlights the industry's consolidation trend, while the growth of multi-family construction reflects shifting urban preferences. Looking ahead, the market's trajectory will depend on macroeconomic factors, interest rate fluctuations, government policies impacting housing affordability, and the ability of the industry to address supply-chain and labor challenges. Innovation in construction technologies, sustainable building practices, and prefabricated homes are also emerging trends expected to significantly influence market dynamics over the forecast period. The competitive landscape is characterized by a mix of large publicly traded companies and smaller regional builders. While established players dominate the market share, opportunities exist for smaller firms specializing in niche markets, such as sustainable or luxury home construction, or those focused on specific geographic areas. The ongoing expansion of the market signifies significant potential for investment and growth, despite the hurdles currently impacting the sector. Addressing supply chain disruptions and labor shortages will be crucial for sustained growth. Continued demand in key urban centers and evolving consumer preferences toward specific dwelling types will be critical factors determining the market's future trajectory. Recent developments include: June 2022 - Pulte Homes - a national brand of PulteGroup, Inc. - announced the opening of its newest Boston-area community, Woodland Hill. Offering 46 new construction single-family homes in the charming town of Grafton, the community is conveniently located near schools, dining, and entertainment, with the Massachusetts Bay Transportation Authority commuter rail less than a mile away. The collection of home designs at Woodland Hill includes three two-story floor plans, ranging in size from 3,013 to 4,019 sq. ft. with four to six bedrooms, 2.5-3.5 baths, and 2-3 car garages. These spacious home designs feature flexible living spaces, plenty of natural light, gas fireplaces, and the signature Pulte Planning Center®, a unique multi-use workstation perfect for homework or a family office., December 2022 - D.R. Horton, Inc. announced the acquisition of Riggins Custom Homes, one of the largest builders in Northwest Arkansas. The homebuilding assets of Riggins Custom Homes and related entities (Riggins) acquired include approximately 3,000 lots, 170 homes in inventory, and 173 homes in the sales order backlog. For the trailing twelve months ended November 30, 2022, Riggins closed 153 homes (USD 48 million in revenue) with an average home size of approximately 1,925 square feet and an average sales price of USD 313,600. D.R. Horton expects to pay approximately USD 107 million in cash for the purchase, and the Company plans to combine the Riggins operations with the current D.R. Horton platform in Northwest Arkansas.. Notable trends are: High-interest Rates are Negatively Impacting the Market.

The foreclosure rate in the United States has experienced significant fluctuations over the past two decades, reaching its peak in 2010 at **** percent following the financial crisis. Since then, the rate has steadily declined, with a notable drop to **** percent in 2021 due to government interventions during the COVID-19 pandemic. In 2024, the rate stood slightly higher at **** percent but remained well below historical averages, indicating a relatively stable housing market. Impact of economic conditions on foreclosures The foreclosure rate is closely tied to broader economic trends and housing market conditions. During the aftermath of the 2008 financial crisis, the share of non-performing mortgage loans climbed significantly, with loans 90 to 180 days past due reaching *** percent. Since then, the share of seriously delinquent loans has dropped notably, demonstrating a substantial improvement in mortgage performance. Among other things, the improved mortgage performance has to do with changes in the mortgage approval process. Homebuyers are subject to much stricter lending standards, such as higher credit score requirements. These changes ensure that borrowers can meet their payment obligations and are at a lower risk of defaulting and losing their home. Challenges for potential homebuyers Despite the low foreclosure rates, potential homebuyers face significant challenges in the current market. Homebuyer sentiment worsened substantially in 2021 and remained low across all age groups through 2024, with the 45 to 64 age group expressing the most negative outlook. Factors contributing to this sentiment include high housing costs and various financial obligations. For instance, in 2023, ** percent of non-homeowners reported that student loan expenses hindered their ability to save for a down payment.

Graph and download economic data for Delinquency Rate on Commercial Real Estate Loans (Excluding Farmland), Booked in Domestic Offices, All Commercial Banks (DRCRELEXFACBS) from Q1 1991 to Q2 2025 about farmland, domestic offices, delinquencies, real estate, commercial, domestic, loans, banks, depository institutions, rate, and USA.