What’s in The Shaker today:

• 💥 Immigration's Impact on Housing

• 👀 2023: Worst Home Sales Since '95

• 🙏🏻 Housing Market's 2024 Comeback

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Immigration's Impact on Housing

The surge in border arrivals in the U.S. is set to intensify competition in the housing market, with immigration contributing significantly to population growth and housing demand.

• Net immigration is expected to account for 67% of U.S. population growth in the next decade, up from 54% since 2013, potentially increasing demand for rental housing.

• This demographic shift will particularly impact housing markets in California, Florida, Texas, Nevada, and the Northeast.

• Immigrants typically rent homes that can accommodate multiple generations, driving demand for larger rental properties at attainable price points.

2023: Worst Home Sales Since '95

December 2023 marked a significant slump in home sales, closing out the year with the lowest annual sales figures since 1995, reflecting a challenging period for the U.S. housing market.

• Sales of previously owned homes fell 1% in December compared to November, with a 6.2% decrease from December 2022, hitting the lowest level since August 2010.

• Full-year sales for 2023 totaled 4.09 million units, the lowest since 1995, impacted by high mortgage rates and tight inventory.

• Despite a slight increase in inventory, the median home price in December was $382,600, up 4.4% from the previous year, maintaining a trend of year-over-year price gains.

Housing Market's 2024 Comeback

The U.S. housing market is poised for a significant recovery in 2024, with increased construction and demand expected to drive growth, marking a shift from the recent slowdown.

• National Association of Home Builders CEO Jim Tobin predicts a "housing renaissance" in 2024, with improved demand and construction activity.

• Mortgage rates have been declining, with the 30-year fixed rate dropping to 6.60%, its lowest since May 2023, encouraging potential buyers.

• Housing permits rose in December, up 1.9% from November and 6.1% from the previous year, signaling a positive trend in construction.

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