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:

  1. US homes are getting smaller: The size of new homes being built has declined by 12% since 2016
  2. The median age of all homebuyers is now 49 years old, up from 31 in 1981
  3. Apollo home price model predicts that house prices will increase 10.8% in the coming year
  4. 40% of US homes don’t have a mortgage
  5. The average number of homes sold per real estate agent every year is 21, down from 54 in 2004
  6. Households’ equity in real estate is at a record high 73% of housing values
  7. A record high of 36% of Americans say they would rent if they were going to move
  8. More than half of all mortgages outstanding have an interest rate below 4%
  9. 95% of mortgages outstanding are a 30 year fixed rate
  10. 63% of all mortgages outstanding were issued after 2018