14 housing developments that outlined the yr, together with document home costs, a mortgage price rollercoaster, and a gross sales sea-saw
The 2024 housing market in some ways mirrored 2023: too few properties available on the market, and never sufficient patrons prepared to face excessive costs and mortgage charges. This pushed home costs greater and saved affordability traditionally low – exceptional, on condition that 2023 ended because the least reasonably priced yr for homebuying on document. Almost 40% of renters thought they’d by no means personal a house.
The market was so troublesome that the median homebuying age jumped to a document 56 years previous – seven years older than 2023. A better proportion of homebuyers continued to get priced out.
Many homebuyers sat out the yr on the sidelines, ready for affordability to enhance. Others received bored with ready and determined to take the leap, even with the market headwinds. The presidential election additionally injected extra volatility and unpredictability.
Nevertheless, there have been some key enhancements, together with extra housing stock, declining inflation, and improved renter affordability.
Under are developments, knowledge factors, and visuals that outlined the 2024 housing market.
All knowledge was aggregated from January via November 2024 until in any other case acknowledged. Knowledge got here from Redfin, Hire., the U.S. Census Bureau, FRED, NAR, and/or public data. For questions on metrics, learn our metrics definitions web page.
1. Dwelling costs reached consecutive all-time highs
The U.S. median sale worth reached an all-time excessive in July when it hit $442,000, one month after June recorded a excessive of $438,000. Each eclipsed 2022’s document of $432,000. Home costs hit document highs for 9 straight weeks.
When averaging for your complete yr, 2024’s median sale worth of $428,200 far surpassed any earlier yr in historical past, beating final yr’s by $20,000.
Low-income residents had been hit particularly onerous. Almost 1 / 4 who made lower than $50,000 needed to skip meals to afford funds.
2. San Jose was the most costly metro space for homebuyers in 2024
Beating out San Francisco, San Jose grew to become the most costly metropolitan space for homebuyers within the nation in 2024. The typical month-to-month median sale worth in San Jose was $1,566,100, up 8.5% ($133,120) from final yr. In any other case, the highest ten costliest markets had been unchanged from 2023.
Home costs typically rose throughout the board, with solely Austin and San Antonio posting year-over-year decreases. Housing affordability grew to become a fair bigger disaster this yr, particularly amongst lower-income teams, and was a serious subject for voters within the presidential election.
The highest six costliest metros had been all in California.
Anaheim noticed the most important year-over-year worth improve within the nation, rising 12.5%.
3. Detroit was the least costly metro space for homebuyers in 2024
The typical month-to-month median sale worth for a house in Detroit was $190,865, up 8.5% ($16,220) from 2023. Costs have risen dramatically for the reason that pandemic, as patrons trying to find affordability fought for a restricted provide. Most of the most reasonably priced metros had been high selections for relocating homebuyers early within the yr and have seen giant worth development for the reason that pandemic.
All however some of the reasonably priced metros noticed substantial (>5%) year-over-year positive factors.
9 of the ten least costly metros had been all positioned within the Rust Belt, persevering with final yr’s development.
Austin (-2.2%) and San Antonio (-1.8%) posted the one year-over-year drops within the nation. Each additionally noticed the best enhancements in affordability when factoring in wage development.
4. Dwelling gross sales turned constructive for the primary time in years
4.62 million U.S. properties bought via November 2024, a slight improve from final yr however far under the 5.62 million bought in 2022. On common, 423,100 properties bought each month this yr, beating final yr’s 417,020.
12 months-over-year residence gross sales had been detrimental each month in 2024 earlier than turning constructive in September – the primary time in over three years. Gross sales posted stronger will increase of 4.8% in October and seven.2% in November, which was a promising upward development main into 2025.
Gross sales probably turned constructive as a result of mortgage charges dipped considerably in August and September. And pending gross sales, a 1-2 month main indicator of closed residence gross sales, confirmed power later within the yr, too.
Dwelling gross sales probably elevated as a result of extra patrons accepted that mortgage charges will hover between 6-7% for now.
Might noticed the fewest residence gross sales, at simply 412,150. There have solely been two months since 2012 with fewer gross sales.
To shut out the yr, residence gross sales posted main will increase in costly West Coast markets, probably as a result of a scarcity of properties intensified competitors.
Whereas gross sales rose general, they typically fell when mortgage charges spiked. In October, when charges rose from 6.2% to 7%, roughly 53,000 residence purchases had been cancelled – the very best share in a yr.
Two hurricanes and an insurance coverage disaster helped trigger Florida metros to see the most important drops in residence gross sales: West Palm Seaside (-9.2%), Fort Lauderdale (-7.9%), Miami (-4.6%), Tampa (-3.9%), and Jacksonville (-3.9%). Then again, the drop in gross sales helped enhance provide.
5. Mortgage charges went on a rollercoaster trip
“Once again, mortgage rates dominated the market this year,” continued Fairweather. “Rates hovered between 6.5% and 7.5%, which scared off many buyers and pushed sellers to hold onto pandemic-era rates.”
Charges had been cussed, too. “Even though inflation dropped close to the Fed’s 2% target and we saw three interest rate cuts, uncertainty over the election and strength of the economy kept rates elevated,” she added.
Demonstrating how risky charges had been, a weak jobs report in August led buyers to push mortgage charges down to six.3%, which prompted a surge in purchaser exercise. Charges fell additional in September, however then shortly rose with the prospect of a stronger-than-expected financial system. We don’t anticipate mortgage charges to alter considerably in 2025.
Consumers who’re cautious of an costly market ought to perceive that traditionally, charges are comparatively common. “If you’re ready to buy a home, now is the time to talk with an agent, get prequalified for a mortgage, and start your home search,” suggested April Janas, Senior Mortgage Officer with Bay Fairness, a Redfin firm. “Many markets cater to buyers right now, with more options, less competition, and favorable terms. And if rates do fall in 2025, there are ways to take advantage, including refinancing your mortgage.”
The Fed is anticipated to chop rates of interest solely twice subsequent yr, lower than beforehand forecast.
Nevertheless, there may be lots of financial uncertainty as a result of President-Elect Trump’s doubtlessly inflationary coverage proposals, together with tariffs, tax cuts, and deportations.
6. Inflation lastly cooled down, however the future is unsure
The Fed’s aggressive price hikes from 2022 to 2023 lastly helped deliver down inflation from document highs. In November this yr, the inflation price sat at 2.7%, simply above the Fed’s goal however comparatively wholesome traditionally. The Fed responded by issuing three consecutive price cuts.
Nevertheless, consultants are cautious that inflation may improve once more subsequent yr, particularly if Trump’s insurance policies pan out. The Fed’s up to date projections for 2025 counsel that they plan to behave with extra warning and reduce charges extra slowly.
As rates of interest hovered round 0.5% for the whole thing of the pandemic, inflation took off as a result of provide crunches and elevated shopper demand. The Fed responded by elevating the benchmark rate of interest 11 instances over the course of a yr to fight inflation and funky the financial system.
7. Rents held regular
The median U.S. asking hire reached a excessive of $1,649 this yr, just like final yr and a continued reprieve from the pandemic-era rollercoaster. Rents stayed largely flat all yr and dipped main into 2025. The median asking hire throughout all months via November averaged $1,629 – simply $8 greater than final yr.
However when paired with slowly rising wages, leases really grew to become barely extra reasonably priced. Rents for school graduates and academics noticed notable enhancements.
The calmer market was pushed by a surge of recent flats accomplished this yr after the development increase in 2021-2022. Now, provide is outpacing demand, and new items are renting extra slowly. Condo building has since slowed.
Rents fell quickest within the Solar Belt and a few coastal metros, which constructed probably the most flats throughout the pandemic. Florida and Texas noticed giant drops this yr. The alternative was true in Rust Belt and East Coast metros, which didn’t construct as a lot and had been then confronted with a provide scarcity.
Importantly, although, rents have remained traditionally unaffordable for the reason that pandemic, skyrocketing by 19% from 2019. A document half of all renters spent greater than a 3rd of their revenue on hire this yr, and 22% spent their total paycheck. Incomes have lagged behind rents for years, impacting low-income renters the toughest. This lack of affordability, and the probability of going through greater rents in a brand new house, has led many renters to remain put.
8. New building slowed down
The U.S. noticed a median of 1.35 million new properties began month-to-month in 2024, down from 1.42 million in 2023 and properly under 2022’s 1.55 million. New single-family residence building (excluding leases) fared equally to final yr, peaking at 1.13 million in February.
We anticipate new building to rise subsequent yr, although. “This should have a positive effect on supply in the next few years,” famous Chen Zhao, Redfin Senior Economics Supervisor. “New construction has lagged since the Great Recession but has been slowly recovering, peaking just after the pandemic. Construction dipped this year, but builder confidence has improved heading into 2025.”
Nevertheless, even with post-pandemic enhancements, the nation continues to be experiencing a historic scarcity of reasonably priced housing. New building trails properly behind demand, and the U.S. has a housing scarcity of between 2-6 million items.
Homebuilders have backed off for the reason that pandemic-driven constructing increase, with excessive mortgage and rates of interest hampering purchaser demand and pushing up growth prices. Many builders at the moment are targeted on promoting the properties they’ve. This helps to clarify why simply 28% of homes on the market in September had been newly constructed this yr – the bottom share in 3 years.
California, Oregon, and Utah are amongst states that fall the farthest in need of projected housing wants.
Housing completions fared barely higher than begins, with an annualized price of 1,601,000 in November – a 0.2% year-over-year lower.
Permits to construct single-family properties elevated this yr, however are nonetheless properly under post-pandemic highs.
Knowledge was seasonally adjusted via October 2024.
9. Housing stock posted main positive factors
On common, 1.19 million properties had been listed on the market or pending each month via November in 2024, up a large 15.8% from final yr. Month-to-month stock peaked at 1.21 million properties in October.
Stock rose for just a few causes: extra sellers determined to check the market; properties sat available on the market for longer; and new housing completions continued to steadily rise.
Energetic listings, a measure of all properties available on the market, have steadily elevated since mid-2023, hitting a excessive of 1.73 million in November. Energetic listings and pending gross sales make up the whole housing stock.
Though stock has begun recovering from chronically low provide and the pandemic homebuying craze, it nonetheless sits under the historic regular. There aren’t sufficient reasonably priced properties available on the market.
Stock is seasonally adjusted and calculated in rolling 90-day durations, e.g., January 2024 knowledge is the three-month interval from November 1, 2023, via January 31, 2024. Redfin stock data date again to 2012.
10. New listings continued climbing
Consistent with stock, new listings posted main positive factors this yr. A median of 544,000 properties had been newly listed on the market each month in 2024, up 9% from 2023’s document low. New listings have slowly improved over the previous two years.
The rise in listings took some time to translate to gross sales, although, as excessive housing prices priced many patrons out of the market. It wasn’t till later within the yr that market exercise actually picked up following Fed price cuts and rises in affordability.
New listings are seasonally adjusted and calculated in rolling 90-day durations, e.g., January 2024 knowledge is the three-month interval from November 1, 2023, via January 31, 2024. Redfin listings data date again to 2012.
11. Months of provide continued its regular restoration
Whereas stock measures the variety of properties at the moment accessible on the market, months of provide measures the period of time it might take these properties to promote. 4 to 5 months of housing provide is taken into account a balanced market, with extra indicating a purchaser’s market and fewer indicating a vendor’s market.
The typical inventory of housing provide throughout each month in 2023 was 2.8 months, up from 2.5 months in 2023. The market continued to lean in the direction of sellers, however swung nearer to patrons in sure markets, particularly costly metros with restricted demand. Extra reasonably priced metros typically noticed the other development.
Though provide rose additional in 2024, many patrons needed to combat for each residence; via the primary eight months of the yr, simply 2.5% of the nation’s properties modified fingers – the bottom share since at the very least the Nineties. The pandemic homebuying increase depleted provide, additional hampered by a spike in investor purchases, which has solely began to get well.
“Supply has slowly pulled itself out of its pandemic-infused slide and continued to gain ground this year,” added Fairweather. “However, it’s still far from a balanced market. Buyers and sellers should talk with an agent to determine how best to navigate their local market.”
Provide peaked at 3.3 months in January and fared higher than final yr throughout the homebuying season.
Provide is seasonally adjusted calculated in rolling 90-day durations, e.g., January 2024 knowledge is the three-month interval from November 1, 2023, via January 31, 2024. Redfin provide data date again to 2012.
12. The everyday residence took greater than a month to promote
Houses spent a median of 39 days available on the market in 2024 – a day longer than 2023. Dwelling gross sales continued their main slowdown from the record-breaking tempo seen in 2021-2022, largely as a result of affordability was so strained.
This slowdown was particularly seen in September, when half of all properties listings had sat available on the market for greater than 60 days. The development continued into December. That was up from 43.2% in 2023. Beforehand in Might, greater than three-fifths had been available on the market for 30 days, up from 60% in 2023.
Nevertheless, time-on-market different extensively by metro; properties in reasonably priced metros typically bought way more shortly than properties in costly metros. For instance, in Might, the everyday residence in Buffalo bought in simply 8 days, in comparison with 45 days in Austin. Some pricier West Coast markets, like San Jose, noticed jumps in gross sales to shut out the yr, too.
As homebuying affordability worsened, individuals simply needed a house they may afford.
Many traditionally in style and reasonably priced Solar Belt cities, like Jacksonville, noticed demand skyrocket throughout the pandemic. Now, they’re cooling off and houses are taking longer to promote.
Might and June had been the busiest months of the yr, with properties spending 32 days available on the market.
Though they’re slowing down, properties nonetheless promote traditionally shortly on common.
13. Almost 31% of properties had been bought with money in 2024
30.8% of properties had been bought completely with money in 2024 – down from 32% final yr however nonetheless traditionally elevated.
All-cash gross sales typically observe the identical development because the rise and fall of mortgage charges. When charges transfer down, the proportion of all-cash gross sales strikes down; when charges go up, all cash-sales go up. So, as mortgage charges skyrocketed in 2022, all-cash purchases adopted go well with. They’ve remained elevated since, however are falling.
Luxurious patrons and buyers had been more likely to pay in money.
“By paying all cash, affluent buyers can bypass interest rates altogether and secure a better deal,” continued Zhao. “While these are great benefits, they can contribute to inequality between people who own homes and people who don’t, especially since investors tend to gravitate toward lower-priced homes.”
All-cash gross sales slowly fell all year long from a February peak, as charges dipped and homebuying exercise returned.
Common, cheap metros noticed the very best share of money purchases.
Most of the costliest metros noticed the bottom share of all-cash purchases, together with San Diego (22.1%), Virginia Seaside (21.9%), and Seattle (20.7%).
14. Investor purchases rebounded following two years of decline
Actual property investor purchases rose for the primary time since 2022 this yr, after they climbed 0.5% in March. Exercise elevated because the yr went on and ended at pre-pandemic ranges – spectacular, given the wild swings the business has seen. Investor purchases surged as a lot as 144% yr over yr in 2021, then dropped as a lot as 47% final yr.
When averaging over your complete yr, investor purchases barely elevated from 2023, hovering simply above 17%.
Traders typically purchase properties to both promote or lease and capitalize on low building prices and excessive demand. When prices are excessive and demand is low, buyers often decelerate purchases.
Since mid-2022, investor market share has posted detrimental year-over-year development each quarter, dropping from a document 20% in 2022 to 16% in 2023. Now that home costs are hitting new highs and the shock of excessive mortgage charges is within the rearview mirror, buyers are reentering a extra interesting market.
Traders made more cash in comparison with a yr in the past. In March, the everyday residence bought by an investor went for 55% greater than they purchased it for.
Traders backed out of Solar Belt metros the quickest, with Fort Lauderdale (-13.1%) and Miami (-10.6%) seeing among the many largest drops in purchases.
Though investor market share has declined for the reason that pandemic, it’s nonetheless traditionally very excessive.
Multi-family properties continued to be the preferred amongst buyers, with condos coming in second.
Wanting ahead
The 2024 housing market was robust for a lot of owners and renters, however what does Redfin predict for 2025? Learn our 2025 Housing Market Predictions to study extra.