The American housing market has hit a deep freeze—and it’s sending shockwaves far beyond real estate. In 2024, sales of previously owned homes dropped to just 4.06 million—the lowest since 1995. That’s even worse than the already sluggish 2023, with a slight 0.7% dip. So what’s cooling the market? A trio of economic chill factors: sky-high home prices, rising mortgage rates, and lukewarm buyer demand.
The median U.S. home price surged 4.7% to a hefty $407,500 in 2024. At the same time, the 30-year mortgage rate hovered around 7% into early 2025 before slipping slightly to 6.65% as of April. With affordability becoming a major barrier, many buyers have hit pause—and that’s stalling growth across the board.
According to J.P. Morgan’s 2025 outlook, don’t expect a major thaw anytime soon. Housing activity is projected to creep forward with just 3% or less growth this year. That glacial pace is dragging down related industries too. One casualty? Home improvement retailer LL Flooring, which filed for Chapter 11 bankruptcy in August 2024, seeking to sell off its assets.
Bottom line: As the housing market remains frozen, it’s not just homebuyers feeling the chill—retailers, renovators, and entire sectors are bracing for a long winter.Historic Kelly-Moore Paints, in January 2024, shut down all 157 of its retail locations and furloughed about 700 employees, in an out-of-court wind-down of all of its business operations.
