House price growth in the United States slowed in December 2024 amid growing concerns about declining housing affordability.
Real estate prices in the United States increased by 0.4% in December, that is, the growth accelerated slightly compared to November (it was 0.3%), according to the Redfin price index.On an annualized basis, housing prices rose by 5.4%, which is the lowest in a calendar year since 2015 and the second lowest since 2013. The figures indicate a slowdown in the market.
Redfin predicts that prices will steadily rise throughout 2025 due to limited supply and high demand from buyers. However, housing affordability issues persist. On January 20, 2025, President Trump signed an emergency memorandum prescribing immediate action to reduce housing costs, optimize policies, and increase the supply of homes.The directive focuses on eliminating unnecessary regulatory requirements that increase the cost of building new homes by 25%. It also calls for increased zoning flexibility and incentives for developers to build affordable housing in high-demand areas.There are other steps that should neutralize the factors that directly or indirectly affect the price increase. The Assistant to the President for Economic Policy was instructed to provide a progress report within 30 days and then report monthly on the implementation and impact of these measures.
Source: Lesprom
