“Although affordability remains historically low, the modest rebound is encouraging for potential buyers,” Kushi noted.
Nominal house price growth has slowed to single digits, with prices declining or showing growth under 1% in nearly half of the 50 markets monitored. San Francisco experienced the steepest annual decline at nearly 7%. Real house prices decreased 4.4% year-over-year in May 2025, while increasing 0.6% month-over-month.
Regional variations are significant. South Dakota led gains with a 7.3% year-over-year increase, while Florida saw the largest decline at 11.2%.
Kushi argues this housing cycle differs fundamentally from the pre-2008 bubble. The current market features stronger borrower profiles, conservative loan structures, and substantial homeowner equity buffers.
“The housing sector has been underbuilt for over a decade, leading to a structural housing shortage,” said Kushi. She noted that, since 2009, annual household growth has consistently exceeded new housing units added, creating a supply-demand imbalance.