This isn’t a “good” housing market for anyone. Affordability remains a major barrier to homeownership. Sellers aren’t getting what they want for their homes. Now, builders are signaling that the current housing shortage could get even worse. It’s bad news for aspiring homeowners, but could it finally put a floor on this housing market correction?
This week’s headlines highlight how affordability challenges are reaching every corner of the housing market—not just for buyers. A perfect storm of high interest rates, stagnant home prices, and rising material and labor costs is putting builders under pressure, too. As a result, housing starts and single-family home completions have reached their lowest levels since 2020. But could this slowdown ultimately limit how far home prices can fall?
At the same time, there are other factors keeping homes off the market—like a potential capital gains tax problem discouraging many baby boomers from listing their homes for sale. Meanwhile, house flippers are worried about another tax coming down the pipeline that could eat into even more of their profits. Everyone’s feeling the squeeze, but could these pressures causing the market to bend be the same forces that prevent it from breaking?
In This Episode We Cover
Why the single-family market correction may have just found its floor
Why many homebuilders are building less amid a national housing shortage
Whether we should raise the capital gains tax exclusion for homeowners
A new tax that could cost house flippers even more of their margins
Three issues that are potentially contributing to a stagnant housing market
And So Much More!
Links from the Show
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Flippers Supplied 2x More Starter Homes Than Builders in 2025
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CRE Daily: US Housing Starts Slow, Giving Apartments Room to Recover
AEI Housing Center: Capital Gains Rules on Home Sales and Senior Homeowner Lock In
The Real Deal: “The math has stopped working”: NYC home flipping drops as state legislators propose new tax
Grab The Book on Tax Strategies for the Savvy Real Estate Investor
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/on-the-market-446.
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