Economists: Housing Costs to Remain Elevated for Foreseeable Future

Home Sales

Americans looking to buy a home may have to wait as housing costs are expected to remain elevated until 2026 or later, according to a note from Bank of America (BofA) economists published Monday.

Homebuyers are facing elevated interest rates due to sky-high inflation under President Joe Biden and a housing shortage exacerbated by the COVID-19 pandemic that has led Americans to be hesitant to move, according to BofA. As a result, economists at the bank expect home prices to rise a total of 4.5% throughout the course of 2024 and another 5.0% throughout 2025, before easing slightly in 2026.

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