The landscape for the housing market in 2025 is one characterized by uncertainty. During “The Outlook: 2025 Housing & Economic Forecast” session at the 2025 International Builders' Show (IBS), economists from Zonda, the NAHB, and Realtor.com shared how the approach of the new administration, inventory levels, interest rates, and affordability concerns are likely to impact the housing market in the coming year.
As a result, 2025 is likely to be a year of modest supply improvement, modest sales increases, an improvement of the existing-home market, and higher-for-longer interest rates.
Robert Dietz, chief economist for the NAHB, shared the organization is forecasting just 0.2% growth in 2025 for single-family housing starts, while Zonda chief economist Ali Wolf projected 2.5% growth in single-family starts, driven by improving lot supply conditions.
Realtor.com chief economist Danielle Hale shared how the housing market is shifting from a seller’s market to a more balanced state. The cumulative housing months’ supply of approximately 4.1 months is the highest level since 2016.
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