Story perspectives

U.S. Housing Market Stagnates, Emergency Measures Considered

9/5/2025

Summary

Story summary

The U.S. housing market is stagnating, with flat home prices and over one million listings for 18 weeks.
Redfin reports that "normal" housing costs may not return until 2030, influenced by mortgage rates and price stability.
Economists suggest that a drop to 5.5% mortgage rates could normalize some markets by 2029, others by 2034.
Treasury Secretary Scott Bessent may declare a national housing emergency to address affordability and inventory issues.
Paul Krugman criticizes policies that limit home construction and worsen the housing crisis, advocating for increased supply.

History

Historical Context

The U.S. housing crisis, peaking in 2006, was fueled by a 124% increase in home prices from 1997 to 2006 and rampant subprime lending. By 2008, home prices had dropped over 20%, leading to widespread foreclosures and a financial meltdown. Today, with over one million unsold homes, economists warn of potential housing emergencies and advocate for policy reforms to address ongoing supply shortages.

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Story summary

The U.S. housing market is stagnating, with flat home prices and over one million listings for 18 weeks.
Redfin reports that "normal" housing costs may not return until 2030, influenced by mortgage rates and price stability.
Economists suggest that a drop to 5.5% mortgage rates could normalize some markets by 2029, others by 2034.
Treasury Secretary Scott Bessent may declare a national housing emergency to address affordability and inventory issues.
Paul Krugman criticizes policies that limit home construction and worsen the housing crisis, advocating for increased supply.

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