Supply and Demand Imbalance in the US Housing Market

The US housing market is going through a challenging period due to rising rents and insufficient supply. While rental prices in major cities are reaching record highs, low housing inventory is making homeownership increasingly difficult.

Rising Rental Prices

• Average rent in New York is $2,639, while in California, it stands at $2,531.

• In metropolitan areas like San Francisco, rents exceed $3,000.

• Experts predict that rental prices will continue to rise in the coming months.

Low Housing Supply, Rising Prices

• The shortage of available homes particularly affects young adults and first-time buyers.

• Existing home sales have remained below normal levels for the past three years.

• High mortgage interest rates are making home purchases more difficult.

Regional Differences

• Home sales are declining in the West and Northeast, while increasing in the Midwest and South.

• New home sales are rising in some regions, but overall supply still fails to meet demand.

Conclusion

The US housing market is struggling with high rents, low inventory, and increasing home prices, making affordable housing less accessible—especially for young people and low-income households. In the long term, increasing housing supply and improving financing conditions will be key to solving this crisis.