Mark Worley and Sheharyar Bokhari of Redfin report that the typical home purchased in 2024 reached a record age of 36 years, up from 27 years in 2012, reflecting a growing reliance on older housing amid a prolonged construction slowdown since the 2008 financial crisis. Just 9% of U.S. homes were built in the 2010s, the lowest rate since the 1940s. While older homes (30+ years) still sell for less than newer ones (under five years), that price gap is narrowing. Regionally, Buffalo, NY had the oldest typical home bought in 2024 at 69 years, while Provo, UT had the youngest at six.
Source: Redfin (May 2025)
“America’s housing stock is getting older by the year, and it’s not because buyers prefer vintage homes—it’s because we haven’t built enough new ones…Without more construction, buyers are forced to choose from a pool of aging properties that present a new set of financial challenges, especially for those trying to save enough money to climb onto the property ladder. Older homes have aging systems, energy inefficiencies, and a steady stream of maintenance costs that can quickly add up after move-in.”
Cotality (formerly CoreLogic) released a report highlighting that while the average size of new homes has been shrinking by 10 square feet per year over the past five years, this trend has not brought back affordability. Small homes now make up just 20% of new builds, compared to 32% in 2011, and the median price of a new home under 1,500 square feet hit $430,000 in February 2025. Material, labor, and land costs have all surged, with tariffs expected to inflate prices further, limiting builder profitability on smaller units.
Source: Cotality (May 2025)
“Regulation also puts the brakes on smaller units. Zoning laws, density restrictions, and historical precedent all play a part in slowing down small-scale development. Even in a market where a 4-million-unit supply gap has left most major metros teetering between expansion needs and affordability concerns, encouraging smaller units is a challenge, which has led to decades of builders retreating from this tier.”
Melissa Dittmann Tracey of the National Association of Realtors (NAR) reports that baby boomers (ages 60–78) have reclaimed their dominance in the housing market, making up 42% of buyers and 53% of sellers in 2025. With a median of 16 years in their previous homes and a 47% nationwide rise in home prices over the last five years, many buy entirely with cash. 62% of older boomers used proceeds from prior home sales as their down payment. Unlike younger buyers, who often need financing and make financial sacrifices, boomers leverage equity to bypass high mortgage rates.
Indeed, Meghan Malas of Fast Company reports that the median homeowner tenure has nearly doubled from 6.5 years in 2005 to 11.8 years in 2024, according to Redfin data. This sharp rise, mainly driven by baby boomers aging in place and holding mortgage-free homes, has reduced housing turnover and tightened supply. More than half of boomers own their homes outright, with average monthly costs just over $600, making staying put financially attractive.
Homebuilders
Joel Berner of Realtor.com reports that new residential construction dipped in April 2025, as U.S. tariffs began to drag on the housing sector. Building permits fell 4.7% month over month and 3.2% year over year, while completions dropped 5.9% monthly and 12.3% annually. Starts increased 1.6% from March but remained below last year’s level. Single-family construction was hit hardest, with permits down 6.2% and starts down 12%, while multifamily projects outperformed, with starts rising 28.8% year over year.
Source: Realtor.com (May 2025)
Robert Dietz of the National Association of Homebuilders (NAHB) reports that builder confidence dropped sharply in May, with the NAHB/Wells Fargo Housing Market Index falling six points to 34—the lowest since late 2022. Persistent high interest rates, tariff uncertainty, and rising material costs have dampened sentiment, though most survey responses came before the May 12 U.S.-China agreement to pause tariffs for 90 days. In May, 34% of builders cut home prices, the highest since December 2023, while 61% offered sales incentives.
Source: NAHB (May 2025)
Logan Mohtashami of HousingWire reports that this latest homebuilder survey is just four points above its COVID-19 recession low, signaling deep pessimism in the industry. Builders face pressure from rising tariffs and high mortgage rates, which drive up material costs and stall demand. Trump has advocated for lower rates to offset these headwinds, arguing that cheaper mortgages could revive buyer interest, much like during the pandemic when lower rates helped builders sell despite record-high lumber prices. The survey’s collapse is now seen as a potential recession signal and a warning for future home production.
Paul Emrath of the NAHB reports that the cost of credit for residential land acquisition, development, and construction (AD&C) eased slightly in Q1 2025. Average interest rates dropped on three of the four loan categories tracked: land acquisition loans fell from 8.48% to 8.23%, land development loans from 8.28% to 7.86%, and speculative single-family construction loans from 8.34% to 8.08%. Only pre-sold single-family construction loans saw a slight rate increase, rising from 7.75% to 7.96%.
Danushka Nanayakkara-Skillington, also of NAHB, reports that permit activity continued its decline in March 2025, marking the third consecutive monthly drop. Year-to-date, single-family permits totaled 232,221 nationwide, down 3.8% from March 2024, while multifamily permits fell 3.7% to 113,344. Regionally, single-family permits dropped in the South, West, and Midwest but rose 9.2% in the Northeast. Multifamily permits surged in the South (+14.6%) and Midwest (+12.9%) but plunged 42.8% in the Northeast.
GOP tax bill
Kevin Freking, Lisa Mascaro, and Leah Askarinam of AP News report that President Trump will visit Capitol Hill to rally House Republicans behind his 1,116-page tax and immigration bill ahead of a key vote this week. Narrowly advanced by the House Budget Committee on May 18, the bill faces internal GOP divisions, particularly over Medicaid work requirements and green energy tax cuts. Trump’s push aims to unite the party around what he calls the “One Big Beautiful Bill Act,” while House leaders continue negotiations to move up timelines for cost offsets.
Candyd Mendoza of MPA reports that the GOP’s new draft tax reform bill is a win for the real estate industry, particularly on housing affordability and small business support. The bill includes provisions to permanently lower individual tax rates, expand the SALT deduction, protect the mortgage interest deduction, and enhance small business tax breaks. It also increases the child tax credit and renews opportunity zones with new incentives.
Chris Clow of HousingWire reports that major housing organizations, including the Mortgage Bankers Association (MBA) and the National Housing Conference (NHC), voiced support for the housing-related provisions in the GOP’s proposed tax bill. As the bill moves through the House Ways and Means Committee, NHC President David Dworkin praised including measures to support housing, signaling optimism that the legislation could positively impact affordability and supply amid broader tax reform debates.
Indeed, according to a release from NAR, the industry group praised the new tax bill as a significant win for the real estate sector. Passed by the House Ways and Means Committee on May 14, the bill preserves key provisions like the mortgage interest deduction, small-business tax benefits, and 1031 exchanges, while enhancing the SALT deduction and renewing the opportunity zones program. It also proposes making lower-income tax brackets permanent and expanding the child tax credit. NAR emphasized the bill’s potential to support housing affordability and urged continued caution as the legislation evolves.
NAR Executive Vice President and Chief Advocacy Officer Shannon McGahn comments: “This is a very strong opening bid for our advocacy priorities. This draft language preserves or strengthens a raft of provisions vital to housing affordability, including making the current lower income tax brackets permanent…These are all measures we have worked tirelessly to advocate for on behalf of our members.”
Finally, as of Monday, Susan Heavey of USA TODAY reports that the proposed tax bill cleared a major hurdle by passing the House Budget Committee by a narrow 17–16 vote after days of internal Republican disputes. Four hardline Republicans voted “present” to allow the bill to advance, despite ongoing objections over Medicaid cuts and repealing green energy tax credits. The legislation would extend Trump’s 2017 tax cuts but is projected by analysts to add $3–$5 trillion to the national debt over the next decade. Moody’s recently downgraded the U.S. credit outlook, citing rising debt levels. However, Treasury Secretary Scott Bessent downplayed the move, arguing the tax cuts would fuel enough growth to offset the cost.
