The national housing shortage is expected to persist through the end of the 2020s, with builders facing challenges in finding land, labor, and materials to meet demand.

 

Home prices, after significant growth in recent years, are forecasted to rise more gradually from 2025 to 2029, increasing around 17% from 2024 levels. Home sales are projected to recover in 2025 as mortgage rates decline, continuing upward through 2029, while rent prices, particularly for single-family homes, are expected to rise faster than inflation during this period.

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The persistent housing shortage means demand will remain strong, which could lead to rising property values and rental prices. For investors, this creates an opportunity to capitalize on both property appreciation and rental income growth.