Whether you’re getting ready to buy or sell a home in 2023, it’s important to understand the market. From how many homes are sold per year to the average home price — and pricing trends — knowing these real estate statistics will inform your decision-making. The more educated you are, the better your real estate transaction process is likely to be.
Read on to discover these useful real estate statistics in 2023:
- Realtors in the United States: If you’re thinking of buying or selling a home in 2023, you’ll have your pick of real estate agents. With over 1.56 million in the United States alone, even rural areas are bound to have dozens of options. 1
- Homes in the United States: There are over 140 million homes in the United States, and as developers continue to add housing, expect that number to rise significantly in the coming years. 2
- Highest median selling price: San Francisco, CA has the highest median selling price at $1.36 million. The average down payment is $68,000 at 5%. 3
- New construction: In 2020, over 822,000 new homes were built in the United States, even with pandemic supply chain issues. That number is expected to increase over time. 4
- Market size: In 2022, the real estate and brokerage market reached $202.6 billion. 5
- Existing home sales are down: In 2022, existing home sales were down 16% from the same time period in 2021. This is the lowest level since 2014. 6
- Sale prices to fall in 2023: Home sale prices are projected to fall by 6.8% in 2023, with most of the decline occurring in the first quarter of the year. This may be attributed to homeowners who are reluctant to trade in their lower mortgage rates. 6
- Average home price: The average nationwide home price is projected to reach $385,800 in 2023, which is a 0.3% increase over 2022. 6
- Cost per square foot: Manhattan, NY has the highest real estate cost per square foot at $1,400 per square foot — but the median selling price in 2020 was just $950,000, compared to the median listing price at $1.6 million. San Francisco, CA’s cost per square foot is $1,100, while Brooklyn, NY is just $720. 3
- Most competitive real estate market: Washington state has the most competitive real estate market. Homes spend an average of just two weeks on the market, and nearly 45% sell for over their asking price. 7
- Average down payment: The average down payment in the U.S. is $27,850 — but compared to high cost of living areas like San Francisco, where down payments average $68,000 at 5%, that’s a steal. 8
- Hawaii is the most expensive state on average: Shockingly, California and New York aren’t the most expensive states, even though San Francisco and New York City consistently top the lists of the most expensive cities in the country. Hawaii actually has the highest median home price at $615,300. California’s median home price is $505,000, and New York’s is just $313,700—the eighth highest state on the list. 9
- Mississippi is the cheapest state on average: Mississippi ranks 50th when it comes to U.S. home prices. The median home is $119,000, just under West Virginia at $119,600. 9
- Mortgage rates will likely go down in 2023: Mortgage rates hit 7.08% in November 2022, but dropped steadily in the following four weeks. One expert predicts that they’ll stabilize at 5.7% by the end of 2023. 6
- Property appreciation rates are going up: Realtor.com’s chief economist expects that property will continue to appreciate in 2023, although not at the shocking rates we saw from 2020 through 2022. She predicts a 5.4% price increase over the course of the year, about half of what it was in 2022. 6
- Average commission: The average real estate commission in 2022 was 5.37% nationwide, although that number varies by location. 10
- Housing starts will drop in 2023: The assistant vice president of forecasting and analysis at the National Association of Home Builders expects housing starts to drop by “double digits” this year. However, she says that as the economy likely improves in 2024, the industry will come out of its slump. 6
- Builder confidence fell in 2022: Builder confidence fell in 2022, thanks to rising mortgage rates and slower buying traffic. About 59% of builders say they’ve used incentives, like price cuts and mortgage rate buydowns, to woo buyers. 6
- What’s contributing to slow building rates: Lot shortages, labor shortages, higher material costs, and lending issues have contributed to slower building rates. Construction costs are up 14%, even though lumber prices have dropped from their record pandemic highs. 6
- A mark of personal success: Despite some of the gloomy predictions for 2023, there’s still home-buying desire out there—86% of Americans believe that owning a home is a marker of personal success. While this number may decline during periods of high home prices and high interest rates, there’s a significant cultural desire to own one’s own property. 11
- Changing homeowner demographics: The total number of white homeowners will decline by 1.8 million by 2040—but the numbers of Hispanic homeowners will grow by 4.8 million, Black homeowners will increase by 1.2 million, and homeowners of other races are expected to grow by 2.7 million. 12
- Renter demographics: Planning to buy a new home soon? You might want to hang onto your first home as an investment property. By 2040, there will be 9.3 million new renter households in the United States, a 21% increase from 2020. 12
- First time home buyers: First-time home buyers made up 34% of all home buyers in the United States in 2022. 13
- Generation gaps: Millennials dominate the housing market at the moment, as 81% of younger millennials and 48% of older millennials are first-time home buyers. Boomers make up the largest percentage of sellers, at 42%. Predictably, members of the silent generation (ages 75 to 95) made up the smallest number of buyers, at just 4%. 13
- Single home buyers: In 2022, 19% of home buyers were single women, while just 9% were single men. Unmarried couples account for 9% of home buyers. 13
- Multigenerational homes are on the rise: Of homes sold in 2022, 11% were multigenerational homes, used primarily by families with aging parents and young children. 13
- Choosing a real estate agent: A whopping 75% of people go with the first real estate agent that they contact, while 15% go with the second. If you’re planning on buying a home, it’s worth shopping around to find out if you can negotiate better fees. 13
- There’s an app for that: Among millennials, 81% find their new home through an app, while 54% of boomers use internet home buying services. 14
- Income share: The average American spends 26% of their income on housing, and more if they live in a higher cost of living area. 15
- Brokers are on the rise: As of 2021, 86% percent of buyers use real estate agents or brokers. That’s up significantly from 69% in 2001. 14
These real estate statistics highlight current trends in the national market. If you’re in the market to buy or sell a home, it’s worth understanding how the market stands now — and where it’s expected to change in the coming year. With research and a great agent, you’re more likely to snag a great deal that will appreciate over time.
- Statista: “Number of National Association of Realtors members in the United States from 2009 to 2021.” Accessed January 27, 2022.
- Statista: “Number of housing units in the United States from 1975 to 2021.” Accessed January 27, 2022.
- Rocket Mortgage: “10 Most Expensive Cities In The US.” Accessed January 27, 2022.
- United States Census Bureau: “New Residential Sales.” Accessed January 27, 2022.
- Ibis World: “Real Estate Sales & Brokerage in the US.” Accessed January 27, 2022.
- Realtor: “2023 Real Estate Forecast: Market to Regain Normalcy.” Accessed January 27, 2022.
- Insurify: “Listed, Listed, Sold! States with the Most Competitive Real Estate Markets
- The Ascent: “Average Down Payment on a House 2021: $27,850
- St. Louis Fed: “Housing Inventory Estimate: Vacant Housing Units in the United States
- Clever: “Current Average Real Estate Commission (2022)
- Apartment List: “Renter Stigma: Social and Economic Pressure In the Housing Market.” Accessed January 27, 2022.
- Urban Institute: “The Future of Headship and Homeownership.” Accessed January 27, 2022.
- National Association of Realtors: “2022 Home Buyers and Sellers Generational Trends Report.” Accessed January 27, 2022.
- Realtor: Highlights From the Profile of Home Buyers and Sellers.” Accessed January 27, 2022.
- Bankrate: “What Americans spend: A look at the cost of housing, food, transportation and more.” Accessed January 27, 2022.
Eric is a writer and editor and leads content at Orchard. He has over a decade of experience in digital media, journalism, and marketing.