U.S. Cities Building the Most Homes

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In the aftermath of the COVID-19 pandemic, elevated real estate values and rents have stretched budgets for homebuyers and renters alike. The median home sales price in the U.S. in the first quarter of 2024 was nearly $92,000 higher than just 4 years prior. Likewise, rent prices are rising again after a temporary decline following the pandemic surge.

Since the beginning of 2022, the U.S. Federal Reserve has raised interest rates in an effort to combat inflation throughout the economy. Between rising mortgage rates and the rapid run-up in home values, the residential real estate market has cooled down slightly. As of Q2 2024, the median home sale price declined 6.8%—down from just over $442,000 in Q4 2022. But while a leveling-out in demand may have helped to slow down price growth, these measures cannot solve another fundamental challenge in the U.S. housing market: a major shortage of housing supply.

According to an analysis from Freddie Mac , existing home inventory picked up 19% year-over-year to 1.28 million units, but remains below pre-pandemic averages. To make matters worse, the National Association of Home Builders’ (NAHB) Housing Market Index—a measure of home builder confidence where a value below 50 is considered “poor”—declined to 43 in June 2024. The NAHB attributes this low rating to higher mortgage rates and increased construction costs.