United States of Housing

In 2023, the United States added more housing than any year since 2007, with 1.448 million units completed in 2023. Housing starts, however, fell 10.07% in 2023 to 1,511,102 units, led by a 17.64% decline in multifamily housing (five or more units). The decline of starts in 2023 comes as new-home costs in the United States, and as interest rates reached a generational high in the fourth quarter of 2023.

The number of housing units under construction in the United States fell in 2023, after reaching a post-recession high in October 2022 for all units and in June 2022 for single-family units.

The number of single-family units under construction is lower in 2023 than 2023, while non-single-family units under construction were higher than 2022. The median cost to build a new home in the United States dipped 6.25% in 2023 to $413,300. On the existing side, the median existing sales price in the United States fell 4.38% year-over-year Q42022-Q42023.

Interest rates were more stable in 2023 than 2023, but increased to a generational high in late 2023, with a spread of 170 basis points during the calendar year. The year-over-year decline in median new and median existing prices were offset by the increase in mortgage rates.

The homeownership rate in the United States was relatively unchanged in 2023, beginning the year at 66% and ending the year at 65.5%

The average age of the first-time buyer in America stood at 35 in 2023, down from last year’s all-time high of 36 years old.