If you’re holding real estate, you’re interested in the 2025 US Housing Market Review. The U.S. housing market is finally catching its breath. After several years of economic whiplash—characterized by surging prices, shrinking inventory, and interest rates that made even seasoned real estate investors hesitate—this year brought something property owners have been craving: stabilization.
While 2025 didn’t bring dramatic highs or lows, it established a new baseline. For AvenueWest property owners and independent investors, understanding this baseline is critical for strategy in 2026. Angela Healy, CEO/Co-Owner of AvenueWest, is bullish on the year ahead, seeing stabilization as a strong opportunity for corporate housing investors. Whether you are selling, renting, or holding property, here is the clear picture of the year’s housing landscape and what it means for the corporate housing sector.
1. 2025 US Housing Market Review: Home Prices Have Leveled Out
After years of aggressive appreciation, price growth slowed in 2025. It’s important to distinguish between what sellers are asking and what homes are actually worth:
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Actual Home Values: According to Zillow, the average U.S. home value was $360,727 as of October 2025. This is essentially flat year-over-year, a stark contrast to the double-digit gains seen in earlier years.
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List Prices: In October 2025, the median U.S. list price was $424,200, up roughly 0.4% compared to the same month in 2024 (Realtor.com).
The Corporate Housing Takeaway:
With home prices no longer soaring, property owners can’t rely on rapid appreciation to make money. Instead, the focus shifts to the income a property generates. In a market where prices are flat, furnished corporate rentals often outperform traditional long-term rentals, because the rental income they generate is higher and more predictable. This steady cash flow becomes the main driver of your investment’s success.
2. 2025 US Housing Market Review: Mortgage Rates Dipped, Yet Affordability Stalled
By late 2025, the 30-year fixed mortgage rate dipped to about 6.19%, near its lowest point of the year. While this was a relief compared to previous highs, affordability remains a major barrier. Bankrate’s 2025 affordability analysis found that around 75% of homes listed in mid-2025 were unaffordable for the typical U.S. household.
- The Corporate Housing Takeaway:The “Lock-In Effect” is real. High ownership costs kept many high-income earners—on the sidelines. This supported strong demand for premium rental properties, as relocating professionals chose to lease high-end furnished units rather than buying into a high-rate environment.
3. 2025 US Housing Market Review: Building Homes & Manufacturing
Homebuilders remained cautious throughout 2025. The NAHB Housing Market Index showed only slight improvement in November, and with persistent affordability pressures, 41% of builders reported cutting prices. Meanwhile, Morningstar forecasted a 3% decline in new-home starts for 2025, signaling continued caution in residential construction.
In contrast, the manufacturing sector saw strong growth. Multiple major U.S. projects were announced or expanded across pharmaceuticals, automotive, steel, and clean energy, including new facilities from Eli Lilly, Merck, Toyota, GM, Stellantis, and Hyundai Steel, reflecting renewed investment in domestic production.
Angela Healy, CEO & Co-Owner of AvenueWest, sees this as a major opportunity for corporate housing:
“I am very bullish on 2026. We’re witnessing a significant resurgence of manufacturing in the United States. Whether it’s the construction of new manufacturing facilities or the ramp-up of production, this trend is real and measurable. At the same time, there is a rapid expansion of AI, data centers, and the associated power infrastructure. All of these are driving a substantial demand for corporate housing.”
This is not just something that she has observed.
- The Corporate Housing Takeaway: Slower residential construction combined with a surge in U.S. manufacturing means less competition for existing rental properties while new industrial and manufacturing projects are driving job growth in major metro areas. As factories, data centers, and other facilities come online, relocating professionals, engineers, and executives will increasingly need high-quality, furnished rentals, helping maintain lower vacancy rates and strong rental demand heading into 2026.
4. Mid-Term Rentals: The “Sweet Spot” of 2025
With homeownership out of reach for many and traditional rentals facing saturation in some markets, Mid-Term Rentals (MTRs) solidified their status as a premier investment strategy.
According to Business Insider, investors are increasingly pivoting to mid-term rentals to secure steadier income while bypassing the regulatory headaches often associated with short-term vacation rentals. Additionally, Rentometer data indicates that while general vacancies ticked up, the demand for flexible housing solutions remains robust.
Why MTRs Won in 2025:
- Regulatory Safety: Several major U.S. cities have continued tightening short-term rental rules in recent years—most notably New York City—leading many investors to shift toward 30-day-plus rental models.
- Tenant Quality: Corporate tenants and traveling professionals typically offer greater stability than vacationers.
- Flexibility: It bridges the gap between long-term reliability and short-term yield.
Looking Ahead to 2026: A Forecast for Investors
Current forecasts suggest modest, stable improvements for the housing market in 2026:
- Mortgage Stabilization: Economists interviewed by AP News expect mortgage rates to stabilize in the low- to mid-6% range in 2026.
- Modest Appreciation: Zillow’s own research forecast states U.S. home values are expected to rise about 1.2% in 2026.
- Continued Rental Growth: As hybrid work cements itself as the norm, the “digital nomad” and “relocation” sectors will continue to drive demand for mid-term furnished housing.
Strategy Over Speculation
2025 didn’t bring fireworks to the housing market, but it brought clarity. For property owners, the message is clear: prioritize value stability, cash flow, and flexibility over speculative appreciation gains.
If you are thinking about renting out your property, diversifying your portfolio, or preparing for high-quality tenants such as traveling nurses, executives, or relocated employees, the current trends strongly support the corporate housing model.
Need Help Navigating the 2026 Market?
If you want to maximize your property’s potential without the headache of self-management, AvenueWest is your partner. We specialize in connecting property owners with high-quality business travelers and corporate clients.
Contact AvenueWest Today to learn how managed corporate housing can increase your rental income and protect your investment in 2026.
