News about housing

Homes available for sale in the UK have reached their highest level for this time of year since 2014, according to Rightmove, limiting price growth as sellers face elevated mortgage rates. Average asking prices for new listings were broadly flat at £371,015, up 1% month on month but down 0.1% year on year. Northern regions saw the biggest monthly falls, while London rose 2.5% after a 6.0% decline over the summer. The average two-year fixed mortgage rate rose from 5.29% to 5.55%, sales agreed fell 8% and new buyer enquiries fell 9% year on year, and some buyers may be waiting for details of the Your First Home scheme.

Tens of thousands of people marched across European cities over the weekend, protesting surging living costs, housing shortages and strained public services. In France, about 550,000 people joined nationwide demonstrations on Saturday, and clashes left 997 police officers and gendarmes injured and 2,397 people arrested. In Milan, four officers and 20 protesters were hurt and about 50 people were detained, Brussels saw clashes, and tens of thousands in Portugal demanded affordable housing. French President Macron and Italian Prime Minister Meloni condemned the violence and vowed to prosecute those responsible. Eurofound's Eszter Sandor warned that the benefits of macroeconomic stability are not reaching the bottom half of the income distribution, eroding trust in governments.

At the Group 3 session, Prime Minister Lê Minh Hưng asked National Assembly deputies to keep contributing to the draft amended Law on Property Auctions, focusing on four issues: the scope of application and selection of auction organizations; participation, bidding and deposits; online auctions and bid increments; and cancellation of auction results and protection of bona fide buyers. For auctions of land-use rights, the process must be linked to the land pricing mechanism under land law. The Prime Minister stressed that the most important goal is controlling prices of social housing, rental housing and housing for policy beneficiaries and low-income people, preventing abnormal and unreasonable price spikes. The high-end segment can develop according to market demand, while related laws must be harmonized.

Prime Minister Lê Minh Hưng called for tight control over the prices of social housing and rental housing so that low-income people and policy beneficiaries can access homes without unreasonable or sudden increases. Speaking during a National Assembly group session on the draft amended Law on Asset Auctions, he said auction procedures must be carefully reviewed against related laws, including the Land Law, Housing Law and Real Estate Business Law. He noted that auctioning land-use rights is key to allocating land to investors, and localities will set land price frameworks and adjustment coefficients. He also warned that unclear or incomplete implementing rules would make it hard for localities to apply the law.

Fannie Mae sharply raised its forecast for the average 30-year fixed mortgage rate, now seeing about 7.4% in Q4 2026 and around 7.5% through 2027, up from 6.8% and 6.7% previously. The author argues the low pandemic-era rates were an anomaly created by extraordinary Federal Reserve intervention, and current rates reflect 3.7% inflation, over $40 trillion in federal debt and rising Treasury yields. On a $350,000 mortgage, the monthly principal and interest payment would be about $2,447 at 7.5% versus about $1,476 at 3%, nearly $1,000 more. Pending home sales fell 8.5% in September from a year earlier, a sign of affordability strain that the author says will force the housing market to adjust to the price of money.

Profit warnings from London-listed companies rose to 65 over the summer, up from 59 in the second quarter and the most since the fourth quarter of 2024, when 71 were issued, according to EY. Over half of firms blamed geopolitical uncertainty, with 38% citing the Middle East conflict, while others pointed to cancelled or delayed contracts and weaker consumer confidence. Construction and household goods had the most warnings at 8, including 6 from housebuilders, taking the housebuilders' year-to-date total to 14, above the 10 issued at the peak of the 2008 financial crisis. EY said this is not a conventional economic cycle, and housebuilders face cost and interest rate pressure while details of the government's first-time buyer support remain unconfirmed.

The chief executive of Mattamy Homes says the HST rebate for new homes in Ontario was an important step, but Canada needs long-term structural reforms rather than stopgap measures. National home sales fell 7% year over year in August, and housing starts slowed modestly. He proposes permanently raising the rebate threshold and eliminating HST on the first $1-million of a new home's cost, with a two-year review mechanism, and allowing homeowners to deduct mortgage interest from taxable income. He notes that home building employs about 880,000 people across Canada each year, arguing that a stronger housing sector is needed to build more homes faster.

According to Rightmove, asking prices for homes newly listed in London rose 2.5% between September 12 and October 10, while Inner London rose 3.9%, unlike the national decline of 0.1%. London's rise followed a weak summer, when asking prices fell 6% across July and August, and sellers hope to capitalize on buyers wanting to move before Christmas. Rising mortgage rates have added about £250 to new mortgage payments since February, and sales agreed were 8% lower and buyer inquiries 9% lower than a year earlier. Listings remain at their highest level for this time of year since 2014, 38% of homes have had price cuts, and offers take 78 days (11 weeks) on average to be accepted. Rightmove suggests some London sellers may be too optimistic on price.

According to U.S. Bank's 2026 Wealth Survey, Gen Z starts building wealth at 19 on average, 13 years before baby boomers. Still, 56% of Gen Z respondents say they did everything 'right' but have not reached their financial goals, and 29% have given up on buying a home for financial reasons. The article attributes this to rising costs: the median existing home sold for 4.7 times median household income in 2025, and in-state public college tuition in 2025-26 is roughly double its 1995-96 level after inflation. It also argues that traditional 401(k) matches leave out young workers who cannot afford to contribute.

Voters in California, Florida and Massachusetts will decide on Nov. 3 measures on zoning, permitting and property taxes tied to housing affordability. In Massachusetts, Question 7 would cap minimum lot sizes at 5,000 square feet and needs more than a simple majority, with Yes votes equal to at least 30% of all ballots cast; supporters have raised more than $1.7 million. Florida requires 60% approval, and Amendment 3 would raise the homestead exemption to $250,000 in 2028, but a University of North Florida poll in July found support falling from 61% to 45% once voters learned the budget impact. In California, Proposition 45 would set deadlines for CEQA environmental reviews and court challenges, but California YIMBY has taken no position.