As we start nearing the end of Q4 2025, the housing market is very different from the boom-and-bust swing of the past few years. Transactions have slowed, mortgage rates are off their peaks but still considered elevated, and strained affordability continues to subdue demand.
In November, the data points to a slow reset rather than a sharp turn. Inventory continues to climb on a year-over-year basis—especially in parts of the Sun Belt and Mountain West—while U.S. single-family home price growth has shifted down to almost flat. At the same time, single-family rents are still holding modest gains as more households stay in the rental market longer.
Every month, investors are hit with a flood of new housing market data to consider. Each data point helps paint a picture of the current state of the U.S. housing market, but there are a few signals that are essential for savvy real estate investors to pay attention to.
To cut through the noise and help you stay up to date on what’s happening in today’s housing market, here’s LendingOne’s November 2025 market recap.
Inventory: Active listings continue to rise—opening more doors for buyers
As 2025 winds down, housing inventory continues to edge higher across much of the U.S. The post-pandemic buying frenzy gave way to slower sales and year-over-year gains in active inventory levels in most markets.
National active listings in October 2025 were 15% higher than the year before. Still, supply was -9% lower than in pre-pandemic October 2019. The uptick highlights that conditions have eased somewhat over the past year, even as inventory remains historically constrained overall.
12-month change in active housing inventory for sale: Shift between October 2024 and October 2025
Inventory is rising because the Pandemic Housing Boom has cooled, strained affordability, and higher mortgage rates have slowed demand. High-growth markets—especially in the Sun Belt and Mountain West—are now relying more on local incomes to support elevated prices.
At the same time, this softening was amplified by new listings hitting the market. Builders in supply-heavy regions are cutting prices and offering incentives, which pulls buyers toward new homes and leaves more existing listings sitting on the market.
Among the largest 200 metros, these are the five with the highest year-over-year inventory gains relative to October 2024:
- Asheville, NC: +86.0%
- Olympia–Lacey–Tumwater, WA: +50.0%
- Fayetteville-Springdale-Rogers, AR: 49.3%
- Durham-Chapel Hill, NC: 48.7%
- Roanoke, VA: 47.2%
Single-Family Home Prices: Cooling Further Under the Weight of Affordability Pressures
Nationally, single-family home prices were nearly flat from October 2024 to October 2025, up just 0.2% compared to a 2.8% gain a year earlier. The softening reflects the affordability squeeze: mortgage rates remain elevated, price levels are still historically high, and more supply is coming online.
One-year change in single-family home prices by metro
In many Sun Belt markets where supply has expanded the most since the early Pandemic Housing Boom years, prices are still resetting as local incomes struggle to support earlier run-ups. Meanwhile, much of the Northeast and Midwest remains supply-constrained, which has helped steady prices and, in some cases, support modest gains—even as signs of softening are emerging there as well.
These are the top 10 U.S. metros for year-over-year single-family price growth:
- Peoria, IL: +9.2%
- Rockford, IL: +7.1%
- Erie, PA: +7.0%
- Utica, NY: +6.7%
- Appleton, WI: +6.7%
- Canton, OH: +6.1%
- Youngstown, OH: +5.7%
- Flint, MI: +5.3%
- Green Bay, WI: +5.1%
- York, PA: +5.1%
Rent Growth: Softening Continues But Remains Stable—Especially for Single-Family Rentals
While home price growth continues to weaken, rent growth remains somewhat resilient—especially among single-family rentals.
In October 2025, overall rents were up 2.3% year-over-year, with multifamily units rising 1.6% and single-family rentals leading at 3.1%.
This year’s continually soft rent growth marks a clear step down from the pandemic-era peak, but steady tenant demand and solid occupancy still point to relatively stable conditions ahead.
At the same time, stretched home affordability is likely pushing more households toward rentals.
Year-over-year shifts in U.S. rent growth
Single-Family Rent Growth: Where Year-Over-Year Rent Growth is the Strongest
Single-family rent growth is still a regional story. Among the 50 largest metros, places like Cleveland, Indianapolis, Providence, and Kansas City are near the top of the chart, with year-over-year gains in the mid–single digits thanks to relatively affordable rents, steady job bases, and limited new supply.
By contrast, Sun Belt boom markets such as Austin, Las Vegas, Phoenix, and Denver are seeing much softer growth as they work through heavier construction pipelines and more price-sensitive renters.
However, even in markets where rent growth has cooled, high home prices and mortgage rates are keeping a solid base of renters in single-family homes. Many investors are counting on new inventory to be absorbed as rental demand ticks up over the long term.
Year-over-year shifts in single-family rent growth
Single-Family Builder Sentiment Remains Weak in the Face of Uncertainty
This month’s government shutdown continued the delay of monthly building permit data, leaving a gap in one of the market’s usual supply signals. Still, other indicators suggest that builders remain wary relative to historic norms.
The National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index (HMI) is a monthly survey that asks builders to rate current sales of new single-family homes, sales expectations for the next six months, and the traffic of prospective buyers. Readings above 50 indicate that more builders view conditions as “good” than “poor.”
The HMI reading rose one point to 38 in November, the highest reading since April—but still weak by historical standards. Relative to October’s reading, confidence in current sales conditions ticked up to 41, sales expectations for the next six months fell to 51, and prospective buyer traffic edged higher to 26.
Single-family builder sentiment remains weak in the face of uncertainty
The latest HMI survey also reveals that more builders are leaning on price cuts to move product. In November, 41% reported trimming prices—the highest share in the post-Covid period, and the first time this metric has exceeded 40%.
At the same time, 65% of builders reported using sales incentives in November, matching the already elevated levels seen in September and October.
Housing Affordability: Typical U.S. Annual Household Income Needed to Afford a Home Risen 80%%
Annual household income needed to afford a home
From October 2019 to October 2025, the annual income a new U.S. homebuyer needs to keep payments under 30% of their income on a typical home with 20% down jumped from about $52,500 to $94,300—a 79.5% increase in just six years.
A new buyer in San Jose now needs about $372,000 in household income, up from roughly $210,000 in 2019. Even lower-cost markets like Pittsburgh (+95%) and Charlotte (+93%) have seen their required new homeowner incomes nearly double in that time.
In markets where the income needed to buy has moved ahead of local wages and inventory is now above 2019 levels—particularly in Sun Belt metros like Cape Coral, San Antonio, Colorado Springs, and Huntsville—many owner-occupant buyers have pulled back.
Homes sit on the market longer, sellers get more flexible on price and concessions, and that opens the door for investors to come in, buy at a better entry price, and potentially build steady rental income while affordability is tight.
Big Picture
November’s housing data continues the story of a market that’s cooling, not crashing. Nationally, active listings are up double digits year-over-year, even as inventory remains below 2019 levels, and single-family home price growth has slowed to essentially flat.
At the same time, rents—especially for single-family rentals—are still growing modestly. Single-family rent growth is supported by strained home affordability that’s keeping more households in the renter pool. Builder sentiment is still weak, with the rising use of price cuts and incentives underscoring how carefully operators are managing absorption and margins.
Investors should be selective with deals and pay special attention to their market dynamics. Consider where rising inventory, flat home price appreciation, and resilient single-family rent growth align to create better entry points and stable cash flow.
