T
he US housing market continued to struggle in June 2025, with new home sales growing only marginally due to high mortgage rates and affordability constraints. According to data from the U.S. Census Bureau and the Department of Housing and Urban Development, newly built single-family home sales rose just 0.6% to a seasonally adjusted annual rate of 627,000 units.

    Industry experts attribute the slow pace to elevated borrowing costs, which have kept many potential buyers on the sidelines. Despite efforts by builders to offer incentives and price cuts, demand remains subdued. "Even with price reductions and financing incentives, sales activity is lackluster," said Danushka Nanayakkara-Skillington of the National Association of Home Builders.

    Inventory levels continue to rise, with 511,000 new single-family homes available for sale as of June - an 8.5% increase from a year earlier. The supply of unsold homes stands at 9.8 months, up from 8.4 months in June 2024. Builders have responded by trimming prices, with the median sales price for a new home falling to $401,800 in June.

    Regionally, new home sales have declined across the board in 2025, with year-to-date figures showing drops of 25.6% in the Northeast and 8.5% in the Midwest. Industry insiders expect the housing sector to remain constrained in the second half of the year due to ongoing affordability and financing pressures.