Despite Population Growth, Existing Home Sales in the US Are Comparable to 1978 Levels
Home sales are expected to increase over the next few years, but not nearly to the level of the pandemic housing boom in 2021
June 13, 2024
Image: alenamozhjer / stock.adobe.com
The current housing market is similar to levels seen in the 1970s
Since 1978, the U.S. population has grown from 223 million to 341 million people. Despite this, the market for existing homes has experienced a severe recession, with April 2024 sales nearly identical to the 1978 housing market. According to Fast Company, as of April 2024, the existing home market saw 4.14 million sales, compared with 1978's 4.09 million.
This is because housing affordability has worsened during this time, causing both buyers and sellers to withdraw from the market, particularly those reluctant to trade low mortgage rates for higher ones.
Goldman Sachs projects that existing home sales will slowly drift up from 4.1 million in 2024 to 4.5 million in 2027. Not only is that far below the 6.1 million during the height of the pandemic housing boom in 2021, it’s also well below the 5.3 million U.S. existing home sales during “normal” times in 2019.
