Bonnie Wu: Forecast of US real estate trends in the next five years
In the next five years, the U.S. real estate market will face the impact of interest rate fluctuations, supply and demand imbalances, population migration and technological changes. Although there is uncertainty, by analyzing the current economy and trends, we can predict the main development directions of US real estate from 2024-2029. Here is Bonnie Wu’s analysis of the key trends. 1. Housing supply still exceeds demand, and housing price growth slows down but remains high The U.S. housing market has been facing a supply shortage over the past few years, especially for entry-level homes. This trend is likely to continue over the next five years, mainly due to the following reasons: Construction costs are high : Prices of building materials (such as wood and steel) and labor costs are still high, and developers are more inclined to build high-end homes rather than affordable housing. Mortgage rates affect demand : Even if the Fed cuts interest rates after 2025, they will still ...