In a recent report by the American real estate brokerage company Redfin, it has been revealed that as of June 15th, the median price for homes sold in the United States reached a record high of $396,500, showing a 1% increase compared to the same period last year. Despite the rising prices, the market seems to be driven by buyers.
Redfin indicated that the median price is still lower than the average listing price during the same period, standing at around $422,238, which is approximately a 6% discount, reflecting the bargaining power of buyers. The current inventory of homes for sale has seen a 14.5% annual increase, and an oversupply may lead to a decline in housing prices by the end of the year.
Although housing prices are soaring, the overall atmosphere in the spring market remains subdued. Redfin’s analysis suggests that prices have not yet fully reflected the imbalance between buyers and sellers.
Kelly Connally, a high-end real estate agent from Oklahoma, stated, “I increasingly advise homeowners to adopt a more strategic pricing approach. Even slightly overestimating the price can lead to long-term stagnation of the property and give buyers more room for negotiation.”
She recommended that aside from pricing reasonably, sellers should also ensure that the property is in good condition and be prepared to make necessary repairs after inspection. She added that properties in prime locations and excellent condition still have the potential to sell at a premium.
While home prices are on the rise, residential construction activities are showing a decline. Data from the U.S. Census Bureau revealed that the rate of new housing starts in May decreased by 9.8% compared to April, hitting a new low since July 2024. The number of building permits also dropped by 2%.
The National Association of Home Builders (NAHB) pointed out that the decrease in multi-family home construction is the main reason, while single-family home construction remains stable due to economic and tariff uncertainties, and high interest rates.
Robert Dietz, the chief economist of NAHB, stated that it is expected that the number of single-family home starts will trend downwards for the full year of 2025.
The high housing prices have also expanded the “renting is better than buying” scenario. According to a report from the real estate platform Zillow on June 16th, even with a 10% down payment, renting a single-family home in the U.S. is still about $100 cheaper per month than buying a house. This stands in stark contrast to six years ago when monthly rental costs were $373 higher than buying.
The latest report from NAHB indicates that a shortage of skilled workers is one of the main reasons for the insufficient housing supply. Research conducted by the association in collaboration with the Home Builders Institute showed that labor shortages resulted in approximately 19,000 single-family homes not being completed as scheduled last year, leading to economic losses exceeding $81 billion.
NAHB stated that the shortage of skilled labor not only delays construction projects and raises construction costs but also weakens new home supply, exacerbating the issue of housing affordability and dragging down overall economic growth.
Chief economist Robert Dietz of NAHB remarked, “This research highlights the urgency of addressing the shortage of skilled workers. Its economic impact is extensive, affecting not only the construction industry but also the overall economy.”
In response to the housing affordability issue, the Trump administration has taken action. In March of this year, Housing and Urban Development Secretary Scott Turner and Interior Secretary Doug Burgum announced the establishment of a joint task force dedicated to inventorying federal idle lands and assessing their potential for housing development.
In May, the two secretaries visited the southern part of Nevada to further discuss how the development of federal lands can promote affordable housing construction.
Nevada Governor Joe Lombardo stated, “Our state is full of opportunities and hopes, but there has been a longstanding shortage of housing supply. Releasing more federal lands will help meet the housing needs of Nevada residents and achieve the necessary scale of development.”