The Evolving Homebuying Landscape: An Update with 2023 Data

The years immediately following the pandemic saw large swings in the housing market, from a rapid growth in prices and homebuying activity in the early years to a sharp contraction in the market as price and interest rate increases challenged homebuying affordability. As part of the Federal Reserve Bank of San Francisco’s work to understand the economic experiences of the communities we serve to inform monetary policy and other areas of our work, we released a report in the fall of 2024 examining trends in pandemic homebuying patterns through 2022. That analysis found that many groups of buyers participated in the homebuying market at elevated rates in 2020 and into 2021. However, in 2022, rising home prices and interest rates contributed to fewer home sales, and it was expected that these headwinds would extend to 2023. This brief extends the analysis to 2023 and explores how trends shifted with this additional year of data. This brief examines national trends and those within the Federal Reserve’s Twelfth District. To see data for other places (Fed districts, states, metropolitan statistical areas, and counties), use the following interactive tool.