NAR: 2021 Real Estate Forecast

Real Estate Price Gains to Continue

 

A group of more than 20 leading economic and housing experts, including National Association of REALTORS® Chief Economist Lawrence Yun, participated in a consensus economic and real estate forecast that projects GDP growth of 3.5% and an annual unemployment rate of 6.2% in 2021. Housing prices are expected to climb 8% next year and 5.5% in 2022, with 30-year fixed mortgage rates of 3.0% and 3.25% for 2021 and 2022, respectively. The group said remote work will continue to be a factor in real estate markets but that the share of Americans working from home will decline post-pandemic, from 21% this year to 18% in 2021 and 12% in 2022. 

In conjunction with the forecast, NAR identified 10 markets that have shown resilience during this pandemic period and are expected to perform well in the next two years. In alphabetical order, the markets are:

  • Atlanta-Sandy Springs-Alpharetta, Ga.
  • Boise City, Idaho
  • Charleston-North Charleston, S.C.
  • Dallas-Fort Worth-Arlington, Texas
  • Des Moines-West Des Moines, Iowa
  • Indianapolis-Carmel-Anderson, Ind.
  • Madison, Wis.
  • Phoenix-Mesa-Chandler, Ariz.
  • Provo-Orem, Utah
  • Spokane-Spokane Valley, Wash.

NAR released the consensus forecast and top 10 markets report today as part of the association’s virtual Real Estate Forecast Summit.