As we move deeper into 2024, the housing market is undergoing a significant transformation, especially in regions that flourished during the pandemic. According to analysts, a noteworthy shift is on the horizon, particularly in certain boom towns that transitioned into real estate hotspots over the past few years. Let's find out where home prices are expected to see declines in the future.

Home Prices Are Set to Drop in Pandemic Boom Towns

According to a report published on Business Insider, Nick Gerli, CEO of Reventure, has provided compelling insights into the potential decline of home prices in these pandemic boom towns. His analysis suggests that homes in the South are currently about 30% overvalued, making it essential for buyers to reassess their strategies.

Predicted Declines in Home Prices

• A 20% price decline is anticipated over the next few years.
• A 15% price decline might occur within the next 12 months.

Drivers of Price Reductions

Several factors are contributing to this expected downturn in the housing market, particularly in Southern states that saw dramatic growth during the pandemic:

1. Waning Demand: The heightened demand experienced during the pandemic is beginning to fade. Many prospective buyers are facing challenges like high interest rates and economic uncertainties.
2. Surge in Inventory: New housing inventory is set to flood the market, with numbers reaching approximately 299,000 homes in July 2024, which is the highest ever recorded.
3. Economic Conditions: The volatile economic environment, characterized by inflation and high interest rates, creates a challenging backdrop for homebuyers, thereby dampening demand.

Current Market Conditions

The current housing landscape presents a unique opportunity for potential buyers. Here’s a deeper dive into the median home price trends and mortgage rates over the past year:

While home prices surged in mid-2023, analysts predict that an increase in housing inventory—coupled with declining buyer interest—will create a significant supply-demand imbalance. This imbalance is expected to drive prices downward as sellers adjust their expectations to attract buyers.

Bust or Boom: Understanding the Bubble

Gerli highlights the precarious position of the Southern housing market, cautioning that it may resemble past housing bubbles:

• Housing Price Surge: In critical boom towns, home prices have skyrocketed by 50%-70% since the pandemic began.
• Stagnant Wage Growth: Meanwhile, median incomes have only increased by 10%-20% during the same period.

This stark divergence illustrates a growing affordability crisis, indicating that the market could experience a correction as high prices become increasingly untenable for prospective buyers.

The Future for Home Buyers

For potential homebuyers, patience and diligence are more crucial than ever. Gerli advises that:

• Long-Term Perspective: Homebuyers should temper their expectations regarding immediate price drops. A more realistic timeline for a favorable buying environment is two to three years, allowing for necessary price corrections and economic adjustments.
• Market Awareness: Buyers must keep a pulse on evolving economic conditions. Prices may eventually become more favorable, but external factors such as interest rates and unemployment could influence timelines.

Economic Influences on Housing

The intricate relationship between the economy and the housing market cannot be overstated. Analysts draw attention to several undeniable trends:

• Potential Unemployment Rise: If the unemployment rate climbs above 7%, it could greatly reduce homebuyer demand, further instigating the anticipated double-digit price declines.
• Restrictive Interest Rates: The current interest rates hover around 6.89%, representing some of the most extreme levels seen in two decades, thus limiting buyers’ purchasing power and overall market activity.

Emerging Opportunities in the Market

Despite these challenges, certain factors may facilitate a more promising environment for buyers in the coming years. Notably:

• Increased Housing Supply: The influx of new construction will afford buyers a wider selection of options at potentially lowered prices. With builders holding nearly 8.9 months of housing supply, the competition may shift more favorably toward buyers.
• Affordability Trends: While the current market reveals disconcerting affordability standards—where buyers must now earn 80% more than they did pre-pandemic to purchase a home—long-term trends suggest improvement. As Gerli notes, the market could witness correction mechanisms such as sustained price reductions and increased income growth.

The Road to Recovery

For many buyers, the journey towards homeownership may seem daunting in today’s climate, but optimism is not misplaced. Gerli emphasizes the necessity for:

• Patience and Research: Prospective buyers must do due diligence in understanding market trends and economic indicators. Monitoring monthly trends, making informed decisions, and being adaptable are key strategies to navigate uncertain times.
• Flexibility in Strategy: The ultimate keys to success in today’s market involve flexibility and strategic planning. Buyers could explore alternative financing options or consider homes slightly outside their desired locations for better affordability.

Conclusion: A New Dawn for Buyers?

In conclusion, the Southern housing market is revealing a golden opportunity for future buyers willing to adopt a patient and informed approach. As inventory continues to rise and demand cools, the forecast for home prices indicates more favorable conditions could lie ahead.

While achieving affordability will undoubtedly be a protracted process, promising signs are emerging amidst volatility. Prospective homebuyers who pay close attention to the evolving landscape and engage in strategic planning can potentially benefit from the exciting shifts on the horizon.

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In a housing market that has recently experienced a cooling trend, experts are unanimous in asserting that it's not heading toward a crash. As we approach 2024, experts shed light on the anticipated shifts and trends that will shape the housing landscape in 2024.

2024 Housing Predictions: More Options and Incremental Affordability

According to Zillow economists, prospective home buyers in 2024 can expect a slightly expanded inventory and a modest improvement in affordability. This comes after a year dominated by headlines about an inventory crunch and mortgage rates reaching 20-year highs. Despite these challenges, the cost of buying a home will persist as a significant factor, maintaining pressure on the rental market.

The prediction is that home buyers will face continued expenses, leading to a prolonged period of renting, a trend more prevalent in this generation compared to previous ones. For those venturing into homeownership, the focus is likely to shift towards properties requiring renovations. The do-it-yourself ethos will keep new homeowners engaged in upgrading and repairing their new abodes.

The Mortgage Rates Dilemma

Higher for longer” is the prevailing sentiment regarding mortgage rates in the upcoming year. The sustained high mortgage rates are expected to drive more homeowners, who secured long-term payments during historically low-rate periods, to list their homes for sale. This shift could be attributed to a growing impatience with the anticipation of the return of the ultra-low rates witnessed in 2021.

However, a scarcity of homes for sale has kept competition fierce throughout the year. Homeowners, reluctant to sell amid rising costs, have clung to their ultralow interest rates. Zillow forecasts a potential increase in the number of homeowners willing to end their holdout for lower rates, leading to more homes entering the market. This influx could be favorable for home buyers, dispersing demand and alleviating upward pressure on prices.

Addressing Affordability Concerns

Despite the challenges posed by high mortgage rates and limited inventory, Zillow projects a marginal improvement in affordability in 2024. The forecast indicates a steady trajectory for home values, with a marginal decrease of 0.2%. Affordability, a top concern for potential home buyers, is expected to witness slight relief.

Zillow suggests that the cost of buying a home may stabilize in the coming year, with the possibility of a decline if mortgage rates cooperate. This scenario would provide breathing room for wages and buyers' savings to catch up, offering a reprieve after the rapid escalation in housing costs over the past two years. With wage growth remaining robust, the proportion of income spent on a mortgage is anticipated to decrease, even if costs remain relatively constant.

Continued Challenges and Potential Solutions

Despite the expected improvements in affordability, many households may still find themselves priced out of the market. The demand for single-family rentals is projected to rise as families seek more affordable alternatives with desirable amenities. Homeowners may contribute to the increase in single-family rental inventory by opting to convert their homes into investment properties, capitalizing on the ultra-low mortgage rates they currently hold.

Urban Rental Trends: Following New York City's Lead

As the real estate landscape evolves, urban rental dynamics are taking cues from New York City. Throughout the pandemic and preceding it, suburban rent prices exhibited faster growth than those in urban neighborhoods. While the gap between suburban and urban rents has narrowed, suburban rents continue to outpace their urban counterparts in 33 of the 50 largest metro areas.

Data from StreetEasy, Zillow Group's New York City real estate marketplace, reveals a significant surge in rental demand near commutable areas with easy access to Downtown or Midtown Manhattan. Conversely, neighborhoods farther from these office-heavy districts experience relatively less demand. StreetEasy experts predict a robust year for Manhattan demand in 2024, with Zillow anticipating a ripple effect as more markets witness a surge in rental demand near downtown centers.

The ongoing multi-family construction boom in 2024 is expected to provide renters looking for downtown residences with an abundance of options. The influx of new homes into the market creates a scenario where landlords, vying for tenants, have a greater incentive to compete on price. This heightened competition is a contributing factor to the increasing prevalence of rental listings offering concessions to attract potential tenants.

The Rise of Homes Needing TLC: Competition Between Buyers and Flippers

Traditionally targeted by home flippers, properties in need of a little tender loving care (TLC) are now attracting interest from buyers searching for their primary residence. The prolonged period of below-average inventory levels, although predicted to improve in 2024, will still fall short of pre-pandemic norms. Faced with limited choices, home buyers are becoming more willing to overlook minor flaws, such as outdated bathrooms or kitchens.

With the current high cost of purchasing a home, flipping properties has become a more challenging endeavor. This shift means that buyers may encounter less competition from flippers compared to previous years. Despite a reduced likelihood of bidding wars, homes in need of improvement won't come cheap. Home buyers are anticipated to frequent local hardware stores as they embark on do-it-yourself (DIY) home improvement projects.

If Zillow's 2024 home trends are any indication, expect a surge in brutalist-inspired features and sensory gardens on home improvement to-do lists. However, “cloffices” and Tuscan kitchen designs are not projected to be as prominent in the evolving home improvement landscape.

Mortgage rates have dropped to their lowest level since February following a cooler-than-expected inflation report. This development brings some relief to homebuyers.

Mortgage Rates Drop: See What $3,000 EMI Can Get You Today

According to Redfin's report, homebuyers with a $3,000 monthly budget can now afford a $450,000 home at a 6.8% mortgage rate, gaining about $25,000 in purchasing power since April when rates peaked at 7.5%. Despite this, the typical U.S. homebuyer's monthly housing payment is now $2,722, which is $115 lower than April's record high, even as home prices are just about $100 shy of last week's record.

Increasing Supply and Its Impact on Homebuyers

There is more supply in the market, with new listings up by 6.4% year-over-year. The total number of listings is at its highest level in nearly four years. Many homeowners are selling because they're tired of waiting for rates to drop significantly. It has been over two years since rates began rising from pandemic-era lows.

Buyers' Hesitance Despite Favorable Conditions

Despite falling rates and increasing inventory, pending sales are down by 5.6% year-over-year, marking the biggest decline in eight months. The Redfin Homebuyer Demand Index shows a 15% decrease in requests for tours and other buying services. Mortgage-purchase applications are also down 3% week-over-week on a seasonally adjusted basis.

Some buyers are waiting for mortgage rates to decline further, believing the Federal Reserve will cut interest rates by the end of the year. However, Redfin’s economic research lead Chen Zhao suggests that waiting may be in vain as markets already expect rate cuts in September and more into 2024 and 2025. Zhao advises that now may be the time for house hunters to get serious about making offers.

Heat Waves Impacting House Tours

Extreme heat is also a factor in the slow demand. In some regions, like Nashville, TN, heat waves are keeping potential buyers indoors. Kristin Sanchez, a Redfin Premier agent, notes that open houses are seeing less traffic due to the extreme weather conditions.

Leading Indicators

Key Housing-Market Data

Redfin's national metrics cover data from over 400 U.S. metro areas based on homes listed and/or sold during this period. Weekly housing-market data dates back to 2015 and is subject to revision.

• Median sale price: $396,379 (up 4.4% year-over-year)
• Median asking price: $404,998 (up 5.2%)
• Median monthly mortgage payment: $2,722 at a 6.89% mortgage rate (up 6.1%, $115 below all-time high)
• Pending sales: 81,297 (down 5.6%, biggest decline in 8 months)
• New listings: 93,676 (up 6.4%)
• Active listings: 977,230 (up 18.4%, smallest increase in 3 months)
• Months of supply: 3.6 (up 0.7 pts)
• Share of homes off market in two weeks: 39.1% (down from 44%)
• Median days on market: 32 (up 4 days)
• Share of homes sold above list price: 31.6% (down from 36%)
• Share of homes with a price drop: 6.7% (up 1.8 pts, highest level on record)
• Average sale-to-list price ratio: 99.5% (down 0.5 pts)

Metro-Level Highlights: Four Weeks Ending July 14, 2024

Redfin's metro-level data includes the 50 most populous U.S. metros.

Metros with Biggest Year-Over-Year Increases in Median Sale Price

• Detroit: 16.3%
• Fort Lauderdale, FL: 14.4%
• West Palm Beach, FL: 13.9%
• Providence, RI: 13.4%
• New Brunswick, NJ: 12.3%

Metros with Biggest Year-Over-Year Decreases in Median Sale Price

• Dallas: -2.3%
• Austin, TX: -2.1%

Metros with Biggest Year-Over-Year Increases in Pending Sales

• San Jose, CA: 9.6%
• San Francisco: 7.1%
• Boston: 4.5%
• Newark, NJ: 3.5%
• Cincinnati, OH: 2.4%

Metros with Biggest Year-Over-Year Decreases in Pending Sales

• Houston: -24.4%
• West Palm Beach, FL: -16.9%
• Minneapolis: -16.2%
• Virginia Beach, VA: -13.4%
• Atlanta: -12.9%

Metros with Biggest Year-Over-Year Increases in New Listings

• San Jose, CA: 30.3%
• Las Vegas: 19.7%
• Miami: 18.9%
• Jacksonville, FL: 17.4%
• Seattle: 15.6%

Metros with Biggest Year-Over-Year Decreases in New Listings

• Atlanta: -13.1%
• Houston: -6.6%
• Warren, MI: -5.1%
• Detroit: -4.5%
• Minneapolis: -3.2%

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The U.S. housing market is a mixed bag. There are some positive signs, but overall, caution is warranted due to ongoing economic challenges. While some signs of improvement exist, the overarching narrative remains one of caution amid significant economic challenges.

In this Freddie Mac report, we delve into the latest trends and forecasts. Let's explore the July 2024 U.S. housing market outlook: declining home sales, rising prices, and challenges ahead amid shifting mortgage rates.

U.S. Housing Market Outlook – July 2024

Steady Decline in Home Sales

Recent data from Freddie Mac reveals a concerning trend in home sales across the country. In May, total home sales—which include existing and new homes—reached 4.7 million. This figure reflects a 2.3% decline from April and a stark 4.9% decrease compared to the same period last year. This downturn in home sales marks a continuation of a troubling trend crystalized over the past few months, where both existing and new home sales have shown substantial declines.

• Existing Home Sales:
  • In May, existing home sales were recorded at 4.11 million (seasonally adjusted annual rate).
  • Month-over-Month Change: -0.7%
  • Year-over-Year Change: -2.8%
• New Home Sales:
  • The annualized rate for new home sales in May was 619,000.
  • This represents a significant reduction of 11.3% compared to April.

These figures illuminate a market struggling with declining sales volume, despite some improvements in inventory levels that may offer a semblance of hope for prospective buyers.

Inventory Challenges

While it’s promising to see some improvement in inventory, the overall situation remains precarious, with inventory levels still lagging behind pre-pandemic averages:

• Existing Home Inventory: Grew by 19% year-over-year, reaching 1.28 million units. This data point is critical, as it highlights the fact that although inventory is increasing, it may not be enough to satisfy the ongoing demand.
• New Home Inventory: This sector is seeing its highest levels since January 2008, indicating a potential shift toward stabilizing the market and giving buyers greater choices.

The market's resilience is notably reflected in these inventory stats, yet the lack of robust supply continues to hinder broader recovery efforts.

Homebuilder Confidence and Construction Trends

Diminishing Builder Confidence

The outlook for home construction appears disconcerting, as highlighted by the National Association of Home Builders. Their Housing Market Index dropped to 43 in June, down from 45 in May, indicating that builders’ confidence is teetering below the neutral threshold of 50. This shift signals a predominantly pessimistic outlook for building conditions in the coming six months.

Key Factors Influencing Confidence Decline:

• High Mortgage Rates: The persisting high rates remain a significant deterrent for potential homebuyers, directly impacting builders' thoughts on future sales.
• Increased Construction Costs: Costs associated with materials and labor have surged, putting additional strain on builders’ margins and discouraging aggressive development strategies.

Construction Activity Decline

The construction sector's struggles are evident, with reported declines in new residential construction:

The numbers suggest significant slowdowns across various categories, underscoring the broader challenges facing the housing market. Despite this reduction in new starts, it is noteworthy that the number of units under construction for multifamily housing remains resilient, with 898,000 units actively being developed. This reflects a strategic focus on multifamily units, perhaps in response to ongoing affordability issues in the single-family market.

Mortgage Rates and Home Prices

Rates Impacting Market Activity

Recent trends in mortgage rates further complicate the housing landscape. In June, the average 30-year fixed-rate mortgage was reported at 6.92%, ending the month slightly lower at 6.86%. This marginal easing in rates has prompted a revival in mortgage activity:

• Overall Mortgage Activity: Increased by 14.5% month-over-month, signaling a growing interest in home purchasing and refinancing as rates dip below 7%.
• Refinance Activity: Experienced a notable uptick of 25.9% when compared to the same week in May, indicating that homeowners are motivated to take advantage of the slightly lower rates.
• Purchase Applications: Rose 8.0% month-over-month at the end of June, reflecting renewed consumer confidence to explore home purchasing options.

Home Price Trends

Despite increased activity, home prices continue to climb. The FHFA Purchase-Only Home Price Index showed a 0.2% increase month-over-month, and year-over-year house price growth remained robust at 6.3% for April. This steady appreciation in home prices, while reflecting strong demand, is a cause for concern, particularly for first-time buyers who may find affordability increasingly elusive.

Future Outlook: What Lies Ahead

Short-Term Challenges Persist

Looking forward, challenges evident in the current housing market are likely to persist. While demand for housing remains strong, several factors will play a crucial role in shaping the market’s trajectory:

• High Mortgage Rates: These will continue to dissuade potential buyers, contributing to suppressed sales activity.
• Escalated Home Prices: With prices on the rise, affordability will increasingly limit the buyer pool, making it difficult to stimulate sales volume.
• Limited Inventory Options: Although inventory is slowly improving, it remains below what would be necessary to meet demand robustly, further tightening the market.

Anticipated Improvements in 2025

Despite these short-term challenges, there is cautious optimism that conditions may improve by 2025 as mortgage rates are expected to ease. As a result, we could witness a gradual recovery in home sales, driven by a more favorable borrowing environment. Our baseline scenario anticipates:

• Increased Sales Volume: As affordability improves and buyer sentiment rebounds.
• Upward Pressure on Home Prices: While we foresee home prices continuing to rise, the pace may moderate slightly if inventory levels can catch up to demand in several key markets.

In conclusion, while the U.S. housing market grapples with significant challenges stemming from high mortgage rates and a constrained inventory supply, there are indicators that may herald a turnaround in the years ahead. 

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As the housing market navigates through unprecedented challenges, the spotlight is on 2024 as a potential turning point. Insights from Realtor.com® reveal a nuanced outlook, with Chief Economist Danielle Hale suggesting incremental progress rather than a seismic shift.

Will 2024 Be a Better Time to Buy a House?

The prospect of a slight dip in home prices in 2024 offers a glimmer of hope for aspiring homeowners. Projections hint at a modest decline of approximately 1.7%, providing some respite. While not a drastic drop, this adjustment could allow incomes to catch up with the relentless surge in prices witnessed over the past decade. Hale emphasizes, “A break after relentless home price increases—a leap forward for buyers' mental health.”

Despite the decline, sellers are unlikely to face a crisis, given the substantial equity accumulated during the years of soaring home values, distinguishing this situation from the Great Recession.

Mortgage Rates: Navigating Market Volatility

The housing market, akin to an intense MMA fight, has been grappling with the impact of soaring mortgage rates. Over the past three years, rates surged from the high 2% to the mid-7% range. While there is optimism for a slight improvement, Realtor.com's economic team forecasts an average rate of about 6.8% for the year, easing to around 6.5% by year's end. Despite the improvement, these rates remain significantly higher than the 4% historical average.

Hale underscores the challenge: “Rising mortgage rates have priced many homebuyers out of the market, amplifying the hurdle posed by record-high home prices.”

Housing Shortage: Challenges Ahead for Homebuyers in 2024

As we look ahead to the upcoming year, a major hurdle for prospective homebuyers looms larger than ever—the aggravating scarcity of available homes for sale. This predicament, compounded by financial constraints, is set to become an even more pressing issue, creating a conundrum for those eager to make a purchase.

The dilemma sets in as the housing market becomes marginally more affordable, yet potential buyers may still find their choices severely limited. A vicious, self-perpetuating cycle emerges: homeowners, unable to find suitable properties, opt to stay in their current residences, further diminishing the options available to other potential buyers.

Projections indicate a significant 14% drop in the number of existing homes for sale in 2024 compared to the current year. This decline, excluding new constructions, underscores the gravity of the situation.

High mortgage rates play a pivotal role in discouraging homeowners from listing their properties. With about two-thirds of homeowners having mortgage rates below 4%, and over 90% enjoying rates below 6%, the incentive to sell diminishes. The prospect of purchasing a new home at a higher rate presents a financial challenge that many are unwilling to undertake.

Moves to list homes and purchase new ones typically stem from necessity, driven by changes in family situations like welcoming a new baby, navigating a divorce, or relocating for a job or retirement, as noted by Hale.

Amidst these challenges, a glimmer of hope emerges from the construction sector. Builders are anticipated to increase construction by approximately 0.4%, resulting in just under a million new homes. Encouragingly, these numbers are not factored into the predicted housing inventory drop by Realtor.com. Builders are likely to sweeten the deal with incentives such as mortgage rate buy-downs, providing some relief to prospective buyers.

Chief Economist Danielle Hale points out, “When buyers embark on their home search, they can expect to encounter an increasing number of new homes on the market.”

Projections for Home Sales in 2024

With homeowners reluctant to list properties and buyers grappling with affordability challenges, home sales are projected to remain low. Realtor.com predicts a marginal increase of 0.1% in existing-home sales, totaling around 4.07 million homes sold in 2024. This pales in comparison to the annual sales figures of 5.28 million between 2013 and 2019, underscoring the formidable challenges faced by the market.

While uncertainties loom, the intricacies of the 2024 housing market unfold. Will home prices drop? The answers lie in the complex interplay of factors, from mortgage rates to housing shortages, shaping the landscape. Stay tuned for a comprehensive exploration of what the future holds.

Housing affordability is a major concern for many Americans, especially renters who face rising rents, stagnant incomes, and a limited supply of low-cost units. Housing affordability is not expected to see a major improvement in 2024 due to tight rental markets and high property prices.

According to a recent report by the Joint Center for Housing Studies of Harvard University, half of all US renters were cost-burdened in 2022, meaning they spent more than 30 percent of their income on rent and utilities. This was a record high of 22.4 million renter households, an increase of 3.2 percentage points from 2019.

The report also found that evictions have increased, homelessness has reached the highest levels on record, and the need for rental assistance is greater than ever. The Covid-19 pandemic and its economic fallout have exacerbated these challenges, leaving millions of renters at risk of losing their homes.

So, will housing affordability improve in 2024 in the US? The answer is not clear-cut, as there are many factors that affect the supply and demand of rental housing, as well as the availability and cost of financing. Here are some of the key trends and projections that may shape the rental market in 2024 and beyond.

Will Housing Affordability Improve in 2024?

Mortgage Rates and Home Affordability

• Mortgage rates are expected to drop further in 2024, which could make homeownership more attractive for some renters who can afford the down payment and closing costs. However, mortgage rates are only one component of home affordability; home prices also play a crucial role.
• Home prices have surged in recent years, driven by low inventory, high demand, and limited construction. According to the National Association of REALTORS®, on an annual basis, existing home sales (4.09 million) dropped to the lowest level since 1995, while the median price reached a record high of $389,800 in 2023. While home price growth may slow down in 2024, it is unlikely to reverse or decline significantly, as there is still a large gap between supply and demand.

Rental Demand and Supply

• Rental demand may remain strong in 2024, as many renters are unable or unwilling to buy a home. Some renters may face credit or income constraints that prevent them from qualifying for a mortgage or saving for a down payment. Others may prefer renting for lifestyle or mobility reasons, such as young adults who value flexibility and convenience over homeownership. Moreover, some renters may be discouraged by the high home prices and low inventory in their desired locations, and opt to stay in their current rentals or look for cheaper alternatives.
• Rental supply may increase slightly in 2024, as more multifamily units are completed and some homeowners decide to sell their homes and rent instead. According to the Harvard report, multifamily construction starts reaching 547,000 units in 2023, up from 509,000 in 2019. However, most of these units are aimed at the high end of the market, where vacancy rates are higher and rents are softer. The supply of low-rent units (below $800 per month) has shrunk by 2.5 million since 2011, while the number of renter households earning less than $30,000 per year has increased by 1.9 million.

Rental Assistance Programs

• Rental assistance programs may provide some relief for low-income renters who struggle to pay their rent and utilities. The American Rescue Plan Act of 2021 allocated $21.6 billion for emergency rental assistance, on top of the $25 billion provided by the Consolidated Appropriations Act of 2020.
• As of January 2024, about $18 billion of the first round of funding had been disbursed to more than 3 million households, according to the US Treasury Department. However, many renters still face barriers to accessing these funds, such as lack of awareness, documentation requirements, landlord cooperation, and bureaucratic delays.

Therefore, housing affordability is unlikely to improve significantly in 2024 in the US, as rental markets remain tight and home prices remain high. However, there may be some opportunities for renters who can take advantage of lower mortgage rates and increased rental supply at the upper end of the market.

For low-income renters who face severe cost burdens and housing instability, rental assistance programs may offer some temporary relief, but more long-term solutions are needed to address the underlying structural issues of inadequate supply, insufficient income, and unequal access.