If you thought the housing market was bad enough: Buckle up.
Affordability is also hurting builders, who have had to continue offering incentives and price cuts.
However, that leads to one small silver lining predicted by Oxford Economics. Due to labor-market concerns and weak demand (thanks to currently high home prices and mortgage rates), they predict home price growth will slow and builders will limit new-home construction.
“Slower home price growth may provide a floor beneath sales,” Martin wrote, but “household appetites for spending will largely hinge on the health of the labor market.”
Despite a struggling housing market, Oxford Economics predicts the U.S. will avoid a recession this year and the Federal Reserve will start to “cut rates aggressively” at the beginning of 2026.
