In 2024, U.S. existing-home sales dropped to 4.06 million, marking the lowest level since 1995 and significantly lower than the pre-pandemic average of 5.3 million. This decline occurs alongside a population growth of 76.3 million and an increase of 33.2 million households since 1995, exacerbating the housing market's constraints. The increase in sales adjusted for population highlights a drastic dip in activity, reminiscent of the early 1980s. The affordability crisis is keeping homeowners from selling, creating a backlog and pent-up demand in the market.
U.S. existing-home sales have hit the lowest level since 1995, with only 4.06 million sold in 2024, significantly below pre-pandemic figures.
With 76.3 million more people and 33.2 million more households since 1995, the housing market today faces unprecedented constraints despite historical low sales.
The current lock-in effect is causing stagnation as many homeowners are deterred by higher rates, preventing them from selling their homes.
The ongoing decline in housing affordability has led to decreased buyer activity and sellers holding off on entering the market, creating a backlog.
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