By James M 
Community associations will remain a top choice for homebuyers in the coming year as the U.S. housing market is expected to see improvements in inventory, home sales, and prices coupled with more stable mortgage rates.
Projections from the Foundation for Community Association Research, an affiliate of Community Associations Institute, estimate 3,000 to 4,000 new condominium communities and homeowners associations will be built in 2025. Community associations — including homeowners associations, condominiums, and housing cooperatives — currently house 77.1 million Americans and comprise 30% to 33% of the U.S. housing stock.
The Foundation’s U.S. National and State Statistical Review projects the total number of U.S. community associations will grow from 369,000 to as many as 373,000 by the end of 2025.
Several trends are likely to shape the 2025 housing market:
- Rising inventory: Housing inventory is projected to increase by 11.7%, driven by new construction and more homeowners listing their properties, according to Rate.com.
- Moderate price increases: Home prices are expected to rise modestly, with annual increases likely around 2%, according to the National Association of Realtors.
- Stable mortgage rates: Mortgage rates could stabilize and even decline to 6%, reports NAR.
- Increased housing: NAR also projects that construction will approach the historical average of 1.5 million units annually, though inventory levels will still fall short of pre-pandemic norms.
Information and links provided by CAI.