Housing

Home Sales Rise Slightly in May Despite Affordability Challenges

Published JUN 23 2025

Story

Above: A "For Sale" sign in front of a home in Washington, D.C., U.S., on Thursday, May 8, 2025. Image credit: Nathan Howard/Bloomberg/Getty Images

The Facts

U.S. existing home sales increased 0.8% in May to a seasonally adjusted annual rate of 4.03 million units, beating economists' expectations of 3.95 million but marking the slowest May pace since 2009 during the housing crash.
Realtor
Wsj
The national median existing home price reached $422,800 in May, representing a 1.3% increase from the previous year and setting an all-time high for the month of May, though this marked the slowest annual price growth since June 2023.
Reuters
Wsj
Housing inventory rose significantly with 1.54 million homes available at month's end, up 6.2% from April and 20.3% from May last year, providing buyers with more options but still below pre-pandemic levels of roughly 2 million homes.
NPR Online News
The Hill
Mortgage rates remained elevated near 7% throughout the year, with the average 30-year fixed-rate hovering between 6.62% and 6.89% during the contract period for May sales, adding hundreds of dollars monthly to borrowing costs.
Reuters
The Hill
Affordability constraints limited market participation, with households earning $100,000 annually able to afford only 37% of available listings, compared to 65% six years earlier when rates and prices were lower.
NPR Online News
Wsj
Properties remained on the market longer at 27 days compared to 24 days the previous year, while first-time buyers comprised just 30% of sales versus the historically healthy 40% share needed for a robust housing market.
New York Post
Reuters

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The Spin

Democratic narrative

Trump's policies are crippling U.S. housing. Tariffs on Canadian lumber inflate home-building costs; mass deportations target construction workers; and his debt-exploding bill will raise mortgage payments over $1,400 yearly by 2034. With housing starts at a post-2020 low and prices up over 1%, his actions worsen the affordability crisis for working and middle-class Americans.

Robertreich

Republican narrative

Trump, while still fresh into his term, is actually revitalizing homeownership. By slashing regulations, streamlining permits, and freeing federal land for development, he's boosting supply to lower prices. His pro-growth approach, including support for private investment and reshoring manufacturing, counters Biden's regulatory failures that tripled mortgage rates, making homes affordable again.