Part 7/9:
Financial institutions like JP Morgan project that housing affordability will only begin to improve after about three and a half years. They estimate that if mortgage rates drop just slightly—by one percentage point—there could be a two-year window for noticeable relief in affordability. However, they do not anticipate a housing market crash; instead, they expect prices to appreciate modestly—by up to 3%—through 2025.
Even if mortgage rates decline, core issues like supply shortages and the high cost of homes are unlikely to resolve quickly. While rents are expected to stay stable due to increased focus on multifamily development, the overall housing market remains tilted against first-time buyers and low- to middle-income households.