Let’s not be coy. The housing market today feels like the protagonist of a gritty reboot. Home prices are flexing, mortgage rates are doing the dang absolute most, and rent? Rent is playing games that nobody asked for. If you feel as if housing just became the final boss of adulting, do not worry, because you're not alone.
Through mid-2025, Redfin's most recent press release confirmed what many dreaded: U.S. home prices just reached an all-time peak. Again. The median price of homes sold rose 5.5% from the previous year, and the supply of homes available for sale declined even more.
Sellers? The majority are holding firm. If you negotiated a 3% mortgage in 2020, you're not giving up that bargain any time soon. That leaves fewer new homes for sale and more pressure on what's available, which drives prices stubbornly high even when buyers are scaling back.
If you’ve been praying for mortgage rates to chill, keep praying. According to Mortgage News Daily’s July 24th report, the average 30-year fixed rate is hovering around 7.09%. That’s the highest we’ve seen in months.
It's a strange moment. Buyers are holding back, but rates aren't falling. Increased rates are meant to slow things down, but with the inventory so restricted, demand just continues to push forward. Essentially, buyers are stuck between high rates now or maybe even higher costs down the line.
Let’s say you’re not buying. Cool. But renting isn’t exactly the “affordable” option either. Apartment List’s national rent data shows that rents are on the rise again after a short dip earlier this year.
The rental market’s been weirdly quiet for months, but July brought a 0.4% jump in rent nationwide. That may not sound like much, but zoom out and you’ll see rents are up 21.4% compared to pre-pandemic levels. With vacancy rates shrinking, even smaller cities are starting to feel the pressure.
Institutional investors have not completely backed down. They're simply being selective. Rather than buying up whole neighborhoods, many are targeting rental income, particularly single-family rentals in up-and-coming areas. That creates another layer of competition for everyday buyers.
And then there are smaller investors who are jumping into house hacking, rent-to-own strategies, and even co-buying with friends. It's a time of creative thinking in real estate because the traditional paths simply aren't working anymore.
No fairy-tale solution here. The market is volatile, and it's going to remain kooky for a while longer. But that doesn't mean all is lost. It just means buyers and renters are becoming more strategic. People are waiting, saving, teaming up, or relocating to work-remote cities where the math works better.
There isn't ever a perfect time to buy or rent. It's about timing your transition in a way that works for you. Pay attention to the trends, understand your numbers, and don't let the theatrics of the market dictate your story.
Villain arcs always run their course. But while this one is still unfolding, you just play it smart.
