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

hospitality career development
Leaders Driving Hospitality Career Development Must Embrace Tech, Inclusion, and Risk
July 16, 2025

The hospitality industry is under mounting pressure to modernize to meet guest expectations for seamless, tech-driven experiences and also develop leaders who can drive that transformation. According to Rackspace Technology, only 28% of travel and hospitality companies qualify as “AI leaders”— those aligning strategy, compliance, and training with real-world deployment. Another 28% remain in…

Read More
HR compliance
Seeing What Others Miss: The Art of Problem Solving in HR Compliance
July 16, 2025

In this episode of Professional Quotient: Conversations that Build Equity, host Jason Winningham sits down with Andrea Kilburn, the HR EEO and Affirmative Action Compliance Manager at EssilorLuxottica. Andrea has built her career on problem-solving, advocacy, and the power of precise thinking. Andrea shares her unique path from mortgage underwriting to HR compliance, and…

Read More
Ham Radio
Icom’s Germany Trip Highlights the Power of Portability at Friedrichshafen’s Ham Radio Showcase
July 15, 2025

In an era where digital communication happens at the speed of light, it’s easy to overlook the enduring charm and ingenuity of amateur radio. Yet, events like the Ham Radio fair in Friedrichshafen, Germany, remind us that radio isn’t just a relic—it’s a thriving, inventive community built on experimentation and exploration. One striking example is…

Read More
Healthcare Experience
AV’s Expanding Role in Healthcare: How AV Tech Is Easing Nurse Burnout and Boosting Care
July 15, 2025

Healthcare systems are under immense pressure to enhance patient experiences, improve outcomes, streamline operations, and address significant staffing shortages. The strain on the workforce is undeniable — the Bureau of Labor Statistics reported that hospital employment dropped by nearly 100,000 between February 2020 and September 2021. In fact, nearly one-third of healthcare professionals considered leaving…

Read More