2025 Housing Forecast Recap

At the 2025 Housing Forecast, REALTORS®, Affiliates, and community leaders gathered to hear the latest economic data shaping the housing market, and the message was clear: we are entering a period of cautious optimism mixed with ongoing challenges.

The Federal Reserve’s rapid rate hikes in recent years pushed borrowing costs to their highest levels in decades, cooling both home sales and inflation. Now, however, some economists, including Dr. Lawrence Yun, are predicting two to three rate cuts in 2025, which could ease mortgage rates and provide relief to buyers, though we should not expect a return to ultra-low, pandemic-era rates anytime soon.

Affordability remains front and center. While gold prices continue to soar, signaling long-term inflation concerns, the encouraging news is that wages are now outpacing consumer prices. With wage growth at 3.7% compared to inflation at 2.9%, households are regaining purchasing power, giving families more room to consider homeownership if financing conditions improve. Still, housing supply remains a critical issue. Inventory levels are historically low, with many homeowners reluctant to give up their 3% mortgage rates, effectively locking them into their current homes. This lack of mobility is one of the most pressing barriers for new buyers, and one that REALTORS® continue to highlight.

The data also reflected the strain of the past two years, which were among the most difficult for home sales in over a decade. Job growth, while steady, has slowed from the post-pandemic rebound, with forecasts pointing to 400,000 new jobs in 2025 before accelerating again in 2026. Median home prices in Northeast Ohio, particularly in Cleveland and Akron, have shown volatility but remain resilient, while nationwide forecasts predict modest price growth in 2025, followed by stronger gains in 2026.

In addition to the economic outlook, the event featured a panel discussion that explored affordability and attainability from the perspectives of new construction, commercial real estate, and economic development. Panelists included George Davis, Founder & President of ProBuilt Homes; Keith Keltner, Vice President of Capital Markets & Investment Sales at CBRE Cleveland-Akron; and Christine Nelson, Vice President of Project Management & Site Strategies at Team NEO. Moderated by Drew Gaebelein, 2025 ACAR President, the discussion highlighted the complex mix of rising construction costs, financing challenges, and site readiness. The panel also underscored the critical need for zoning reforms across all markets, noting that outdated land-use policies remain a major obstacle to expanding housing supply and improving affordability. To conclude the event, panelists emphasized that collaboration across sectors is essential to addressing these barriers and ensuring that both affordability and attainability remain within reach for Ohio families.

For REALTORS®, policymakers, and advocates, the takeaway was clear: 2025 will be a year of transition. Rates may begin to ease, wages are supporting demand, but supply constraints may continue to hold the market back. As an Association, ACAR will continue to advocate for solutions that expand housing inventory, improve stability, and support growth so that more Ohio families can achieve the dream of homeownership.

Thank you to the National Association of REALTORS® Chief Economist, Dr. Lawrence Yun, for being our Keynote Speaker.

For more information, contact Yariel Camacho, ACAR Advocacy Representative, at ycamacho@akronclevelandrealtors.com