The Housing Market and Home Ownership

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American Dream's closing gate

Illustration: Brendan Lynch/Axios

It's a very good time to be an employed, married homeowner in America, Axios' Dave Lawler writes. It's a very bad time to be looking for those things. The big picture: Generations of Americans have seen a job, a spouse and a house as waypoints in pursuit of the American Dream. Fewer young Americans are on that track than in decades past. Consider three trends: ? Unemployment is low, but so are new job postings. ? Divorce is down, but so is marriage. ? Home values are at historic highs in much of the U.S., but home sales are the slowest in a generation. Zoom in: The labor market is frozen. Very low rates of Americans with jobs are quitting or being fired each month. But those on the unemployment rolls are now staying there longer than at any time since before the pandemic. Employers are instead experimenting with AI to make their workforces more productive, Axios' Courtenay Brown reports. ? Young college grads are hit especially hard by this phenomenon, as entry-level roles are particularly hard to find. Annual marriage and divorce rates have also both been in long-term decline in the U.S. ? Finally, 2025 is shaping up to be one of the worst years for home sales in a generation — possibly the worst in 30 years, per analyst Heather Long. Lack of supply keeps values high for people who already have homes, and makes homeownership that much less attainable for many who don't. Folks who locked in super-low mortgage rates a few years ago are sitting particularly pretty. Now, with high rates and record-high prices in much of the country, millions of Americans are deferring buying homes or giving up entirely. The intrigue: Americans are waiting longer to get married, and fewer are getting married period. Cohabitating among romantic partners is also way down. Surveys even suggest teen dating has dropped dramatically. As The Atlantic's Derek Thompson puts it, "marriage is becoming much rarer and much more stable." ?️ Reality check: Not everyone wants to get married, or to stay in their marriage. Some Americans who could buy a house don't want to. The job market could also soon get better for those who don't have jobs, or worse for those who do. The bottom line: Millions of younger Americans might be stuck on the other side of the white picket fence, looking in.

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Homeowners turn to cash-out refinancing to take advantage of big gains in home equity

Homeowners are cashing in on years of home equity gains, even as mortgage rates remain elevated. The trend sent cash-out home refinancing activity to a nearly three-year high in the April-June quarter, according to data from home loan data tracker ICE Mortgage Technology. Read More.

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Shortage of homebuyers forces many sellers to lower prices or walk away as sales slump drags on

LOS ANGELES (AP) — Skyrocketing housing values and a shortage of homes on the market gave homeowners the upper hand for years when it came time to sell. That’s no longer a given.

https://www.orlandosentinel.com/2025/09/08/shortage-of-homebuyers-forces-many-sellers-to-lower-prices-or-walk-away-as-sales-slump-drags-on/?

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? Homebuyers give up

Illustration: Shoshana Gordon/Axios

One in six aspiring buyers abandoned their dreams of homeownership in the past six years because they couldn't afford a house that they liked, Axios' Josephine Walker writes from a new Bankrate survey. Only 7% of aspiring homeowners are actively attending open houses or searching for homes in their area. High prices, high mortgage rates and short supply are all making the dream of homeownership harder to realize. ? Zoom in: Millennials are the most likely generation to have given up on their dreams of purchasing a home, while Gen Z — the youngest potential homebuyers — are the most likely to still be on the hunt.

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?️ Hot homebuying search: Fixer-uppers

Data: Realtor.com. (Includes single-family homes at least 20 years old with a square foot listing price below the median for their ZIP code, marketed as requiring repairs or updates.) Chart: Jacque Schrag/Axios More U.S. homebuyers are chasing fixer-uppers than four years ago, when mortgage rates were lower and houses were more affordable, Axios' Sami Sparber writes from Realtor.com data. Why it matters: For first-time buyers, fixer-uppers (smaller, older homes that need work) can offer a cheaper entry point. For flippers, they're a chance to profit. ? By the numbers: Keyword searches for "fixer-upper" have more than tripled since 2021, even as those listings become a bit harder to find, according to the real estate site's analysis. Fixer-uppers now draw 52% more page views per property than similarly aged, affordable listings. The median fixer-upper was priced at $200,000 as of July, less than half the $436,250 median for all single-family homes.

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Rise of dumb homes

Illustration: Maura Kearns/Axios

People are increasingly swapping smart devices for old-fashioned buttons, switches and knobs in their homes, Axios' Sami Sparber writes. Plus, reading nooks are being mentioned 48% more often in home listings compared with a year ago, according to Zillow's 2026 Home Trends Report. The big picture: A home where "technology is always in the background, working and listening, feels anxiety-producing" instead of restorative, architect Yan M. Wang tells Axios. Rising costs for smart devices and tech troubleshooting can also cause headaches and push people away from smart home tech. What we're watching: Landlines are also having a renaissance. Parents are adding them back to their homes to give their kids a way to chat with friends without personal smartphones, the Washington Post reports. Keep reading.

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? Mapped: Where houses lost value

Data: Zillow. Map: Kavya Beheraj/Axios Over half of U.S. homes (53%) lost value in the past year, Axios' Sami Sparber writes from Zillow data. Why it matters: That's the most since 2012 — but the vast majority of homeowners still "have plenty to feel good about," the real estate site says. Many homeowners bought before prices surged in the early 2020s. As of October, the median home value had jumped roughly 67% since the property was last sold. Just 4% lost value. Keep reading.

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Homeownership, 101

Historically, homeownership has been considered a cornerstone of the American Dream. Today, about 65% of American households own a home, and roughly 5% own more than one. Homeowners view these residences as not only a place to live, but also a path to building substantial wealth.

 

Centuries ago, homeownership became more common as political systems evolved to allow individuals, rather than governments, to own land. In the US, the number of homeowners increased as mortgages became more accessible: Roughly 74% of today’s US homeowners used a mortgage to finance their home.

 

Real estate makes up roughly half of the typical American homeowner’s household net worth. The financial benefits of homeownership include diversifying one’s financial portfolio while protecting it from inflation, building equity, and more. The numerous costs associated with homeownership are often cited in the ongoing debate over whether renting or owning makes more financial sense, including homeowners insurance, property taxes, and budgeting for maintenance and repairs.

... Read our full explainer on homeownership here.

 

Also, check out ... 

> The vast majority of homeowners feel that they've made a good investment. (Read)

> See a guide to home buying. (Read)

> Is it better to rent or buy? (Calculate)

> The income needed to buy a home in each state. (Explore)

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2026 home-design trends

Illustration: Brendan Lynch/Axios

Three trends reveal what American homes may look like in 2026, Axios' Sami Sparber writes: 1. At-home wellness perks: "Wellness features" are now mentioned 33% more often in Zillow listings compared to a year ago, according to the real estate site's 2026 Home Trends Report. Mentions of spa-inspired bathrooms are up 22%. 2. Nostalgic design: "Traditional" and Art Deco styles are back — part of a broader retro revival, according to Houzz, a design and remodeling site. Think curves, arches and scalloped edges throughout the home, detailed woodwork, and earth tones reminiscent of the English countryside and modern Tudors. Plus, opulent marble and mirrored surfaces, metallic accents and jewel tones inspired by the 1920s and 1930s. 3. Sustainability: Mentions jumped on Zillow for energy-efficient homes (+70%), whole-home batteries (+40%) and EV charging (+25%), suggesting buyers want "eco-conscious living options that save them money and reduce their environmental impact."

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?️ Stat du jour

Illustration: Shoshana Gordon/Axios

The average rate on a 30-year U.S. mortgage fell this week to 6.15% — the lowest level since Oct. 3, 2024 — an encouraging sign for prospective home buyers. One year ago, the rate averaged 6.91%. Keep reading. Go deeper: "Condo Owners Face Worst Market Since '12" (WSJ gift link).

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? Midwest's moment

Photo Illustration: Brendan Lynch, Lindsey Bailey/Axios

The Midwest is winning on affordability — and attracting coastal transplants. The advantage is two-pronged, The Wall Street Journal reports: "The region has the lowest median sales price for existing homes in the country, at $319,400 in November versus $409,200 nationwide, according to the National Association of Realtors. Rents in major Midwestern cities are also lower than the national median, according to Bank of America data." "Year-over-year wage growth has been climbing more steadily in the Midwest over the past year than it has in other regions, according to Bank of America deposit data." ? The intrigue: A stretch of Wisconsin, along the Fox River from Oshkosh to Green Bay, stands out. Just 1 in 7 homeowners there spends 30+% of their income on housing, compared with 1 in 5 nationally, WSJ notes. Gift link.

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Average US long-term mortgage rate hits the lowest point in more than 3 years

The average long-term U.S. mortgage rate is now down to its lowest level in more than three years.

https://apnews.com/article/mortgage-rates-housing-interest-financing-home-69c3a931e01b30c60477563b9f1e4d11?

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🏠 America's record housing freeze

Data: ATTOM. Chart: Axios Visuals U.S. homeowners are staying put for the longest time in at least 25 years, largely thanks to their low mortgage rates, Axios' Sami Sparber writes. Why it matters: That — along with still-high home prices and tight inventory — is keeping the housing market on ice. Sellers at the end of 2025 had owned their homes for an average of 8.6 years — a record in data going back to 2000, when the average was 4.2 years. Homeowner tenure has increased steadily in almost every major metro area over the past two decades, according to ATTOM, an industry data provider. It's especially "pronounced in coastal and Northeast metros, where tenure often exceeds a decade," ATTOM CEO Rob Barber tells Axios. 🔮 What's next: Some golden handcuffs are starting to come loose. For the first time since 2020, more homeowners have mortgage rates of 6% or higher than have rates below 3%, a new Realtor.com analysis finds. Keep reading.