The US housing market has entered a deep freeze, with record-low home sales and rising fears that America is becoming a nation of renters.
Only 2.5 percent of US homes changed hands between January and August 2025, according to Redfin.
That is just 25 per 1,000 and is the lowest in at least 30 years. During the 2021 pandemic boom, that figure was closer to 40 per 1,000.
Existing-home sales in 2024 fell to the lowest since 1995, even as prices continued climbing — the national median home price hit $407,500, up nearly 5 percent year-on-year.
Experts say such high home prices, mortgage rates near 6 percent, and inflated grocery and living costs mean many Americans cannot afford homeownership.
Another big issue is that homes are increasingly owned by large scale investors who buy them up in bulk to rent out.
Real estate agent Glennda Baker told the Raising America podcast that big investors are ‘renting back the American dream,’ noting that corporations now own 27 percent of the Atlanta housing market.
‘They’re telling you that you want to be a renter — that you don’t want to deal with maintenance or ownership,’ Baker said.
According to real estate experts, at least 27 percent of the Atlanta market is owned by corporations that are renting back the American dream to young people (pictured: Atlanta)
Glennda Baker, Atlanta real estate broker
‘But as a renter, you are at the mercy of that landlord,’ she continued. ‘They can raise the rent or refuse to renew your lease. You’re on a hamster wheel.’
Nationally, corporate landlords own around 3 percent of all single-family rentals, but in cities like Atlanta, Charlotte, and Phoenix, the figure is much higher, contributing to rent inflation and low inventory.
Baker said that what frightens her the most is the prospect that many members of younger generations may never step off the wheel — that they could be trapped in the renting cycle forever, and are therefore unable to build generational wealth through owning property.
Meanwhile, older homeowners aren’t selling. One-third of baby boomers who own their home say they’re not budging, according to a Redfin survey.
Baker said boomers hold roughly $46 trillion in equity, but many refuse to move due to capital gains taxes and low locked-in mortgage rates.
‘They own their homes outright or have mortgage rates under 4 percent. The reason they’re not selling is because the house they bought for $400,000 30 years ago is now worth $2.5 million. What’s the capital gain on that? They paid their taxes, they paid their mortgage — they’ve done everything right,’ Baker said.
Economists estimate this ‘lock-in effect’ has removed up to 1.5 million homes from the market.
Baker said the possibility of a renter nation ‘scares the hell’ out of her, so she’s trying to buy as much real estate as possible so her own kids won’t be stuck in a renting cycle.
Baker said boomers hold roughly $46 trillion in equity, but many refuse to move due to capital gains taxes and low locked-in mortgage rates (pictured: a home in Atlanta)
Nationally, corporate landlords own around 3 percent of all single-family rentals, but in cities like Atlanta, Charlotte, and Phoenix, the figure is much higher, contributing to rent inflation and low inventory (pictured: a development of new houses in Atlanta)
Analysts say the housing market’s freeze won’t thaw soon.
The Fed’s caution on rate cuts, along with rising material and insurance costs, has kept affordability near record lows.
Whether the US becomes a ‘nation of renters’ hinges on policies that boost supply — like zoning reform, seller tax breaks, or curbs on bulk investor buys.
For now, the pattern is clear: homebuying is down, renting is up, and the American Dream increasingly comes with a lease.
