New Home SalesCENSUS
771K
U.S. Housing Market · 2021
U.S. Housing Market in 2021
pandemic peak2.96% record17.5% YoY price
Existing SalesNAR
6.12M
Median PriceNAR
$357,100
30Y MortgagePMMS
2.96%
2021 was the absolute speed peak of the U.S. housing market. Existing-home sales hit 6.12 million, the highest since 2006; median prices jumped 17.5% YoY to $357,100 — the largest single-year price increase on record; and 30-year mortgage rates bottomed at 2.96%, the lowest annual average in the 50-year PMMS history.
Three forces compounded. The Fed held rates near zero and continued $120B/month in MBS purchases through November. Pandemic savings remained elevated. Remote work permanently shifted housing-location preferences for an estimated 30M U.S. workers. By year-end, the median home cost 5.1× median household income — a stretch that would only intensify as 2022 brought 5%+ mortgage rates without commensurate price relief.