Analysts from Apollo Global Management have forecasted a significant 10.8% increase in U.S. home prices for 2025, marking the most optimistic prediction among 16 different models, which average a 3.5% rise.
This bullish outlook contrasts with historical data showing an average annual home appreciation of 5% since 1976, and has sparked discussions on the feasibility of such growth amidst potential economic downturns.
The AEI Housing Center predicts a more moderate increase of 5.5%. These varying predictions reflect the ongoing debate about future trends in the housing market.
Here are their “10 Facts” on real estate:
- US homes are getting smaller: The size of new homes being built has declined by 12% since 2016
- The median age of all homebuyers is now 49 years old, up from 31 in 1981
- Apollo home price model predicts that house prices will increase 10.8% in the coming year
- 40% of US homes don’t have a mortgage
- The average number of homes sold per real estate agent every year is 21, down from 54 in 2004
- Households’ equity in real estate is at a record high 73% of housing values
- A record high of 36% of Americans say they would rent if they were going to move
- More than half of all mortgages outstanding have an interest rate below 4%
- 95% of mortgages outstanding are a 30 year fixed rate
- 63% of all mortgages outstanding were issued after 2018