The Eastern U.S. housing market in 2025 is showing signs of stabilization after years of volatility. Home prices remain high, but sales are slowing, inventory is rising, and buyers are gaining more leverage—though affordability remains a major challenge.
Home prices hit a national record (~$435,000 median), but sales volume has dropped due to persistently high mortgage rates (hovering around 6–7%). Homes are sitting longer on the market (median ~53 days), and many sellers are choosing to delist rather than reduce asking prices.
Northeast & Mid-Atlantic markets like Hartford, CT, Manchester-Nashua, NH, and Allentown, PA are seeing strong buyer interest and moderate price growth.
Connecticut towns are experiencing a rebound in home sales, though inventory remains low in larger metros like Stamford.
Washington D.C., Baltimore, and parts of Pennsylvania are showing resilience, with improving sales and price growth.
High rates continue to price out many first-time buyers. Cash purchases now make up over one-third of home sales, giving investors a competitive edge. FHA and VA borrowers are more likely to face financial strain.
Renting is on the rise as affordability wanes. Build-to-rent developments and co-living models are expanding in suburban areas. New apartment supply is peaking nationally, though the Northeast is still underbuilt compared to demand.
Energy-efficient homes and smart tech are increasingly important to buyers. Green-certified properties are commanding price premiums. At the same time, property tech (PropTech) is making buying and selling more digital and efficient.
The Eastern U.S. market remains competitive, but shifting power toward buyers in many regions. Expect continued emphasis on affordability, green construction, and flexible living options. Key cities in New England and the Mid-Atlantic are leading the way in value and demand.