Are Housing Prices Expected To Drop In 2025. In 2025, the housing market is expected to start picking up again, with home prices rising by approximately 1% to 2% above the current inflation rate. The sizzling building boom is expected to drop off by the end of 2025, easing some of the competitive pressures felt by landlords and property managers as the new rentals came online.

Compared to 2024, new rental. This increase will be due to.