The Challenges Brought by a Cooling Housing Market

With the hot housing market that erupted during COVID-19, experts are starting to say we are “cooling off’ and trending toward a housing recession, reported Michael Bergin, Co-Founder, and VP of Platform at Higharc, a platform for home building design, construction, and sales.

Housing market analyzer and owner of Zelman & Associates Ivy Zelman predicted the 2008 housing market crash. The truth of her prediction may lend accuracy to her forecast for the impending market. Ivy Zelman is calling for a drop in sales price of five percent in 2023 and another five percent in 2024. The National Association of Realtors states the “Latest Housing Indicator” for the median home price is $403,800.

This means a return to a buyer’s market, and it’s been a really long time,” stated Bergin.

Why is this a potential problem? There is still a housing shortage. While more than one million homes were built the last year, only eight of the past 65 years have seen less than 600,000 homes built. This 400,000 difference in the least productive years is small when comparing the relative demand. NPR dove into the issue, stating that there are 3.8 million shortages in housing units in the U.S.

And that projected shortage may not even be accurate. “Demand for new homes has increased so massively since 2020 that it’s hard to tell how many buyers are still out there who have been saving and waiting the whole time,” Bergin explained.

New communities are selling out before the sales center is even open, which is a stark contrast to the situation just a few years ago. How has this impacted customization?

Bergin said, “Buyers had expected a level of customization, they’ve become accustomed to this. Now we’ve seen at the peak of the market, builders pulling back on those customizations and making it so that it’s easier for them to anticipate when the home is going to be built and when it’s going to be ready because there’s less variability, less flexibility”. With the cooldown that is starting to reverse again—there is a pushback toward buyers who want customization.

However, some builders are starting to hurt—especially those on the higher end. For example, Toll Brothers experienced a 60 percent decline in purchase contracts year-over-year. Homebuilders are beginning to look to technology to secure sales because there are fewer qualified buyers on market.

Whether Zelman’s prediction comes to fruition or not, Bergin knows the housing market will experience some drastic changes in the next few years.

Follow us on social media for the latest updates in B2B!

Image

Latest

Career
How to Build a Purpose-Driven Career in the Age of AI and Acceleration
October 9, 2025

In a world reshaped by AI, global connectivity, and relentless technological advancement, the pace of disruption has never been greater. Careers are being reinvented as industries transform, and individuals everywhere are being challenged to find meaning, adaptability, and creativity in their professional paths. According to Deloitte’s 2024 Gen Z and Millennial Survey, 86% of…

Read More
youth
Fashion, Identity, and Digital Life Collide: Why Brands Must Listen, Collaborate, and Co-Create With the Next Generation of Youth
October 8, 2025

As the lines blur between fashion, identity, and digital life, brands are racing to understand how today’s youth are reshaping culture and commerce. Pacsun’s new Youth Report 2025, produced in partnership with GlobalData, offers one of the most detailed portraits yet of Gen Z and Gen Alpha—two generations united by self-expression but divided by…

Read More
talent
Grow Your Own Talent: How McDonald’s and Skilltrade Are Building a Culture of Lifelong Learning
October 7, 2025

The world of work is changing faster than ever. Automation is reshaping jobs, new technologies are rewriting what “qualified” means, and a new generation of workers is redefining what they expect from employers. From fast food to healthcare, companies are realizing they can’t just hire talent — they have to build it. They’re starting to…

Read More
The Tesla Test-How AI is Changing How We Search Video
The Tesla Test: How AI is Changing How We Search Video
October 7, 2025

In this episode of Secured, Mike Monsive sits down once again with Idan Koren, EVP of Marketing at Verkada, to discuss how artificial intelligence is transforming the landscape of physical security, operational efficiency, and the broader business of technology. The conversation begins with Verkada’s groundbreaking integration of natural language search in video surveillance —…

Read More