The Fastmarkets ‘Outlook for the US housing market 2025’ webinar unpacked the current challenges facing market participants. Key takeaways for the US housing market:

• Falling builder confidence and construction trends – High mortgage rates and material costs are driving builder pessimism, despite strong demand. 
• California wildfire rebuilding – The rebuilding process following California wildfires is anticipated to be exceptionally slow due to labor shortages, regulatory hurdles and insurance challenges.
• Demographic shifts and the immigration surge – Demographics remain a near-term support for the housing market, but questions remain about the full impact of the recent surge in immigration. 
• Mortgage rates and affordability challenges – A sharp rise in mortgage rates has contributed to affordability challenges and stasis in the existing market. 
• The future of construction – New construction is projected to struggle through 2025 before seeing gradual improvement in 2026.