What will happen to rents and housing in the United States?

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What will happen to rents and housing in the United States: experts give their opinion on the market in 2024

Relator.com presents the report: “Real estate market forecasts and predictions for 2024: housing affordability is finally starting to improve”.

In the report, the real estate company sees a combination of continuity and change in the real estate market and the economy: “In a context of moderate economic growth, a slight increase in unemployment and a decrease in inflation, Long-term interest rates, including mortgage rates, have begun a slow retreat”.

Real estate analysts predict for next year a Less strong housing demand and more rental housing options that will keep home sales relatively stable at low levels through 2024, helping home prices change slightly even as the number of homes for sale continues to decline.

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2024 forecast for key housing indicators, according to Realtor.com:

Mortgage payments:

Forecast to 2024: 6.8% (average); 6.5% (end of year)
Expectations for 2023: 6.9% (average); 7.4% (year-end)
2022 historical data: 5.3% (average); 6.4% (year-end)
Historical Average 2013-2019: 4.0% (average)

Appreciation of the average price of existing houses (Y/Y):

Forecast 2024: -1.7%
Expected to 2023: +0.2%
Historical data in 2022: +10.3%
Historical Average 2013-2019: +6.5%

Sales of existing homes (A/A | Annual total):

2024 forecast: + 0.1%, 4.07 million
Expectations for 2023: -19.0%, 4.07 million
2022 historical data: -17.9%, 5.03 million
Historical Average 2013-2019: + 2.1%, 5.28 million

Inventory of current homes for sale (A/A):

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Forecast 2024: -14.0%
Expected to 2023: -5.7%
Historical data in 2022: -4.4%
Historical Average 2013-2019: -3.6%

Start of single-family homes (A/A | Annual):

2024 forecast: + 0.4%, 0.9 million
Expectations for 2023: -10.3%, 0.9 million
2022 historical data: -11.2%, 1.0 million
Historical Average 2013-2019: 0.8 million

Homeownership rate:

Prediction 2024: 65.8%
Expected to 2023: 65.9%
Historical data in 2022: 65.8%
Historical Average 2013-2019: 64.2%

Rent growth:

Forecast 2024: -0.2%
Expected to 2023: +0.2%
Historical data in 2022: +10.8%
Historical Average 2013-2019: +5.0%

The report says that by 2024, it is expected that Renting remains a more profitable option than short-term although he expects the rental advantage to decline as home prices and mortgage rates decline.

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