While home prices shattered records in 2024, soaring to a new high of $412,300, the American real estate market told a more complex story of cooling sales, shifting affordability, and regional divides that defined a transformative year.
Key Takeaways
- In 2023, the median sales price of existing single-family homes in the United States reached $389,800, marking a 5.7% increase from the previous year.
- Existing-home sales totaled 4.09 million in 2023, down 19.0% from 2022 levels.
- The average sales price for all types of existing homes in December 2023 was $382,600, up 4.8% from December 2022.
- Total US housing inventory stood at 1.28 million units at end of 2023.
- Months' supply of existing homes was 3.8 months in December 2023.
- New listings in December 2023 were 318,000, down 4.3% YoY.
- National median rent was $1,384 in September 2024.
- Rent growth slowed to 0.6% YoY nationally in September 2024.
- Multifamily vacancy rate was 6.5% in Q2 2024.
- Total retail space vacancy rate was 5.3% in Q3 2024.
- Office vacancy rate nationwide hit 19.8% in Q3 2024.
- Industrial vacancy rate was 5.6% in Q3 2024.
- Total mortgage debt on 1-4 family homes was $12.8 trillion in Q2 2024.
- 30-year fixed mortgage rate averaged 6.81% in 2023.
- Mortgage originations totaled $1.68 trillion in 2023.
A cooling housing market saw fewer sales but record high prices in 2024.
Commercial Real Estate
1Total retail space vacancy rate was 5.3% in Q3 2024.
Verified2Office vacancy rate nationwide hit 19.8% in Q3 2024.
Verified3Industrial vacancy rate was 5.6% in Q3 2024.
Verified4Net absorption for multifamily was 240,000 units in 2023.
Directional5Retail sales per sq ft averaged $612 in 2023.
Single source6Office asking rents rose 2.1% YoY to $33.90 psf in 2024.
Verified7Industrial rents reached $8.49 psf nationally in Q3 2024.
Verified8Total US office inventory 12.4 billion sq ft as of 2024.
Verified9Retail cap rates averaged 6.8% in Q3 2024.
Directional10Hotel occupancy rate was 63.2% in 2023.
Single source11Data center vacancy under 1% with 500MW under construction Q3 2024.
Verified12Medical office vacancy 8.2% in Q2 2024.
Verified13Total commercial real estate lending $5.2 trillion outstanding 2023.
Verified14Construction starts for nonresidential fell 8.1% in 2023.
Directional15NYC office vacancy 16.5%, highest since 2002.
Single source16SF office vacancy 34.3% in Q3 2024.
Verified17Logistics space absorption 300 million sq ft in 2023.
Verified18Grocery-anchored retail vacancy 4.9% stable in 2024.
Verified19Self-storage rents up 1.2% YoY in Q3 2024.
Directional20Total CRE transaction volume $495 billion in 2023, down 46%.
Single source21Office investment sales down 60% YoY to $30B in 2023.
Verified22Industrial deals totaled $100B in 2023.
Verified23Hotel transaction volume $25B in 2023.
Verified24Average hotel RevPAR $110.32 in 2023.
Directional25Flex space vacancy 9.1% in suburban markets 2024.
Single sourceCommercial Real Estate Interpretation
The commercial real estate market is a tale of two worlds: while the office sector is quietly collapsing under the weight of its own empty desks, the rest of the industry is busy fulfilling our every logistical, storage, and data-hungry need.
Home Prices and Sales
1In 2023, the median sales price of existing single-family homes in the United States reached $389,800, marking a 5.7% increase from the previous year.
Verified2Existing-home sales totaled 4.09 million in 2023, down 19.0% from 2022 levels.
Verified3The average sales price for all types of existing homes in December 2023 was $382,600, up 4.8% from December 2022.
Verified4In Q4 2023, US home prices increased by 5.3% year-over-year according to the S&P CoreLogic Case-Shiller National Home Price Index.
Directional5The median home sales price in the US hit a record $412,300 in June 2024.
Single source6Single-family home sales in 2023 averaged 2.79 million units annually.
Verified7Pending home sales index rose 0.6% in December 2023 to 77.6.
Verified8In 2023, 28% of homes sold above list price, down from 34% in 2022.
Verified9The national median sale price per square foot for homes sold in May 2024 was $225.
Directional10Existing condo-coop sales in 2023 were 510,000 units, down 9% from 2022.
Single source11Home sales in the Northeast region averaged $450,200 median price in 2023.
Verified12Midwest median existing-home price in 2023 was $299,000, up 6.4% YoY.
Verified13Southern US median home price reached $345,800 in 2023.
Verified14Western region homes sold at median $555,100 in 2023.
Directional15First-time buyers accounted for 27% of all buyers in 2023 NAR survey.
Single source16Repeat buyers made up 73% of total home purchases in 2023.
Verified1722% of 2023 buyers purchased in a suburb, up from 18% prior year.
Verified18Average days on market for homes sold in 2023 was 29 days.
Verified19In 2023, 51% of homes sold within a month of listing.
Directional20Luxury home sales (over $1 million) fell 8.5% in Q1 2024 YoY.
Single source21Median price for starter homes under $300k dropped 1.4% YoY in May 2024.
Verified22iBuyer purchases represented less than 1% of all home sales in 2023.
Verified23Cash sales accounted for 28% of all transactions in Q2 2024.
Verified24FHA-financed home sales made up 17% of purchase market in 2023.
Directional25VA loan purchases were 11% of total home sales in 2023.
Single source26Conventional loans financed 52% of home purchases in 2023.
Verified27Seller concessions reached 1.7% of sale price in Q2 2024.
Verified28Price cuts occurred on 40.1% of homes listed in August 2024.
Verified29Median list price nationwide was $435,000 in September 2024.
Directional30Homes sold for 98.2% of original list price in September 2024.
Single sourceHome Prices and Sales Interpretation
While prices climbed to dizzying new heights, the market's pulse remained faint, as a sharp decline in sales revealed a stark reality: affordability has officially been evicted.
Housing Inventory and Supply
1Total US housing inventory stood at 1.28 million units at end of 2023.
Verified2Months' supply of existing homes was 3.8 months in December 2023.
Verified3New listings in December 2023 were 318,000, down 4.3% YoY.
Verified4Active listings increased 13.5% YoY to 1.05 million in February 2024.
Directional5National inventory of unsold homes rose to 4.2 months supply in July 2024.
Single source6Homes for sale nationwide hit 1.4 million in August 2024, up 25% YoY.
Verified7New unsold single-family homes inventory was 481,000 units in August 2024.
Verified8Under construction single-family homes numbered 639,000 in August 2024.
Verified9Shadow inventory (seriously delinquent + foreclosures) was under 1% of homes in 2023.
Directional10Total vacant housing units in US were 15.1 million in Q1 2024.
Single source11Rental vacancy rate was 6.6% in Q1 2024.
Verified12Homeowner vacancy rate stood at 0.9% in Q1 2024.
Verified13Inventory of homes actively for sale was up 40% YoY in mid-2024 suburbs.
Verified14Pending listings increased 5.6% YoY in September 2024.
Directional15Months of supply for new single-family homes was 8.7 months in August 2024.
Single source16Existing single-family inventory was 3.3 months supply in Q3 2024.
Verified17Price per square foot for listings fell to $213 in Q3 2024.
Verified18Expired listings share rose to 14% of all listings in 2024.
Verified19Total active listings hit 870,000 in October 2023 low point.
Directional20Inventory-to-sales ratio for existing homes was 4.2 months in June 2024.
Single source21New home inventory was 372,000 units seasonally adjusted in 2023 avg.
Verified22Regional inventory in South was 430,000 homes in Q2 2024.
Verified23Northeast active listings up 20% YoY to 140,000 in summer 2024.
Verified24Midwest supply reached 4.5 months in Q3 2024.
Directional25Western US inventory surged 30% YoY to 220,000 listings.
Single source26Distressed sales (foreclosures/short sales) were 2% of all sales in 2023.
Verified27Second-home sales dropped 35% YoY in 2023.
Verified28Investor purchases were 16% of home sales in Q1 2024.
Verified29Median days on market for active inventory was 64 days in Sept 2024.
DirectionalHousing Inventory and Supply Interpretation
The market is finally taking a deep breath after a years-long sprint, as rising inventory and cooler demand shift the power subtly, but not dramatically, from a seller's gallop to a more measured walk.
Mortgages and Financing
1Total mortgage debt on 1-4 family homes was $12.8 trillion in Q2 2024.
Verified230-year fixed mortgage rate averaged 6.81% in 2023.
Verified3Mortgage originations totaled $1.68 trillion in 2023.
Verified4Delinquency rate for 1-4 family mortgages was 3.97% in Q2 2024.
Directional5FHA delinquency rate 10.62% in Q2 2024.
Single source6VA delinquency at 4.04% Q2 2024.
Verified7Prime jumbo originations $295 billion in 2023.
Verified8Refinance share of originations 18% in 2023.
Verified9Purchase originations $1.39 trillion in 2023.
Directional10Average FICO score for mortgages 754 in Q1 2024.
Single source11Debt-to-income ratio averaged 38% for new loans 2023.
Verified12Loan-to-value ratio 78% average for purchases 2023.
Verified13Foreclosure starts 0.10% of serviced loans Q2 2024.
Verified14GSE share of new originations 52% in 2023.
Directional15Ginnie Mae guaranteed 25% of 2023 originations.
Single source16Non-agency jumbo 5% of market in 2023.
Verified17Mortgage applications up 1.9% WoW in latest survey.
Verified18ARM share 7.3% of applications in 2024.
Verified19Jumbo applications 10% of total volume 2024.
Directional20FHA applications 15.2% share in 2024.
Single source21Home equity line usage up 5% YoY Q2 2024.
Verified22Reverse mortgage originations 58,000 in 2023.
Verified23Credit union mortgage lending $85B in 2023.
Verified24Bank mortgage production $450B in 2023.
Directional25Nonbank lender share 54% of originations 2023.
Single source2615-year fixed rate averaged 6.16% in 2023.
Verified27Mortgage servicing rights valued at $2.1 trillion 2023.
Verified28Serious delinquency (90+ days) 0.74% Q2 2024.
VerifiedMortgages and Financing Interpretation
Despite a mountain of debt and rising rates keeping borrowers on their best behavior, the American homeowner appears to be tiptoeing through a field of financial landmines with remarkable, if precarious, grace.
Rental Market
1National median rent was $1,384 in September 2024.
Verified2Rent growth slowed to 0.6% YoY nationally in September 2024.
Verified3Multifamily vacancy rate was 6.5% in Q2 2024.
Verified4Average US apartment rent reached $1,700 in Q3 2024.
Directional5Renters aged 18-34 make up 37% of all renters in 2023.
Single source6Suburban rent growth outpaced urban by 2% in 2024.
Verified7One-bedroom median rent was $1,500 in top 50 metros avg 2024.
Verified8Two-bedroom rents averaged $1,800 nationwide in 2024.
Verified944 million households rented in US as of 2023 Census data.
Directional10Rent burden (over 30% income) affected 49% of renters in 2023.
Single source11Eviction filings totaled 3.6 million renter households in 2023.
Verified12Median renter income was $53,000 in 2023 ACS data.
Verified13Institutional investors own 3% of single-family rentals as of 2024.
Verified14Airbnb listings impacted long-term rental supply by 1.5% in 2023.
Directional15Rent control covers 2% of US rental units in 2024.
Single source16Multifamily completions added 440,000 units in 2023.
Verified17Asking rents for new leases rose 3.2% YoY in Q3 2024.
Verified18Occupancy rate for apartments was 94.2% in September 2024.
Verified19Sunbelt cities saw 5% rent increases in 2024.
Directional20Northeast rents flat at 0.1% YoY growth in 2024.
Single source21Midwest median rent $1,200, up 2.5% YoY.
Verified22Southern rents averaged $1,450, highest growth region.
Verified23Western US median rent $1,900 in 2024.
Verified2435% of renters spend over 50% income on housing.
Directional25Student housing vacancy was 5.8% pre-2024 fall semester.
Single source26Senior housing occupancy 87% in Q2 2024.
Verified27Short-term rental revenue grew 8% YoY in 2023.
Verified28Delinquent renters 9.5 million households in Q1 2024.
VerifiedRental Market Interpretation
The market is a master of cruel math, coolly reporting that rent is "only" up 0.6% nationally while nearly half of all renters are financially drowning, spending over 30% of their income just to keep a roof overhead.
Sources & References
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