The U.S. housing market is poised for recovery in 2025, with expected improvements in inventory, home sales, and home prices, supported by stable mortgage rates. However, housing experts caution that geopolitical and economic factors could still introduce volatility. Community associations remain a cornerstone of housing stability, providing attractive options for homebuyers seeking vibrant, well-managed communities.
Key Housing Trends for 2025
Housing policy experts project several positive trends that could impact community associations:
- Inventory Expansion: Housing inventory is expected to grow by 11.7% due to increased construction and more homeowners listing their homes.
- Moderate Price Growth: Home prices are expected to rise at a measured pace, with annual increases averaging 2%.
- Mortgage Rate Stability: Mortgage rates are forecast to stabilize, potentially declining to 6%.
- Increased Housing Starts: Annual housing starts may approach the historical average of 1.5 million units, though overall inventory will remain below pre-pandemic norms.
Advocating for Community Association Growth
The community association housing sector is projected to expand further in 2025. Research from the Foundation for Community Association Research, an affiliate of Community Associations Institute (CAI), anticipates 3,000 to 4,000 new condominium communities and homeowners associations will be established nationwide. This expansion reinforces the importance of advocacy efforts supporting sustainable community association development.
Currently, 77.1 million Americans live in community associations, accounting for 30% to 33% of the U.S. housing stock. The Foundation’s U.S. National and State Statistical Review for Community Association Data forecasts the number of U.S. community associations will grow from 369,000 to as many as 373,000 by year-end 2025.
CAI remains committed to continuing an emphasis to advocate for legislative and regulatory policies that promote community stability and housing affordability.
To learn more about the latest community association data, visit the https://foundation.caionline.org/research/industry-data/.
Sources:
- NAR Real Estate News
- Housing Hot Spots
- NVAR Housing Market Forecast
- 2025 Housing Preview
- Top 10 Housing Markets 2025
Stay engaged with CAI Advocacy Blog for updates on housing market trends, legislative efforts, and community association policy advancements.
