May Housing Market Recovery: Surge in New Listings in Northeast and Midwest
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 03 2026
0mins
Source: PRnewswire
- Price Decline Trend: The national median listing price in May 2026 was $429,500, down 2.4% year-over-year, marking the steepest annual decline since 2017, indicating a market undergoing price adjustments that may attract more buyers.
- Pending Sales Growth: Pending sales rose 4.3% year-over-year in May, extending a six-month growth streak, suggesting that despite rising mortgage rates, buyers remain actively engaged, reflecting market resilience and adaptability from both buyers and sellers.
- Regional Inventory Shift: New listings surged by 8.6% in the Northeast and 4.7% in the Midwest year-over-year, while growth stalled in the South and West, highlighting a significant shift in supply-demand dynamics that may provide buyers with more options.
- Market Dynamics Adjustment: Despite mortgage rates climbing from 6.30% to 6.53%, the growth in new and pending listings indicates that buyers and sellers are recalibrating to current market conditions, adapting to economic uncertainty, which could lead to further normalization of the market.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NWS?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NWS
About NWS
News Corporation is a diversified media and information services company. Its Digital Real Estate Services segment consists of the Company's interest in REA Group and Move. REA Group is a digital media business specializing in property and property-related services on its Websites and mobile apps. Move is a provider of digital real estate services in the United States and primarily operates Realtor.com, a real estate information, advertising and services platform, its referral-based services, online tools and services to do-it-yourself landlords and tenants. Its Dow Jones segment includes Dow Jones, a global provider of news and business information, which distributes its content and data through a variety of media channels. Its Book Publishing segment consists of HarperCollins, a consumer book publisher with operations in 15 countries. Its News Media segment consists of News Corp Australia, News UK and the New York Post and includes The Australian, The Daily Telegraph, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Record Number of Young Adults Living with Parents Amid Housing Crisis
- Record Co-Residence: In 2025, 25.2 million adults under 35 lived with their parents, surpassing the pandemic peak, indicating a housing affordability crisis rather than a lack of jobs, highlighting ongoing pressures in the housing market.
- Rising Housing Costs: The national median home listing price reached $430,000, 34.4% higher than 2019, while median asking rent hit $1,673, up 17.9% from 2019, making independent living financially unattainable for many young adults.
- Strong Employment Rates: Approximately 70% of young adults living with parents are employed, many holding college degrees, yet high housing costs prevent independence, illustrating that this is a supply issue rather than an employment issue.
- Delayed Household Formation: The data reveals that the never-married rate among 25 to 34-year-olds has risen from 79% in 2000 to 90%, indicating a trend of delayed household formation, resulting in unmet latent housing demand in the market.
See More
Record Number of Young Adults Living with Parents Amid Housing Crisis
- Record Co-Residence: In 2025, over 25.2 million adults under 35 lived with their parents, marking a historic high that reflects the ongoing rise in housing costs, which has made independent living unattainable for many, indicating a significant supply-demand imbalance in the housing market.
- Rising Housing Burden: The national median home listing price has reached $430,000, a 34.4% increase from 2019, while the median asking rent stands at $1,673, up 17.9% from 2019, making independent living financially unfeasible for millions of young adults.
- Employment vs. Living Arrangements: Despite approximately 70% of adults aged 25 to 34 being employed, the high housing costs prevent them from achieving independence, highlighting that this is a supply issue rather than an employment issue, revealing unmet housing demand in the market.
- Delayed Household Formation: The data shows that about 90% of adults aged 25 to 34 living at home are never married, with the proportion holding a four-year degree rising to one-third, indicating a trend of delayed household formation that exacerbates pressures on the housing market.
See More
Rental Market Dynamics: Las Vegas Leads, San Francisco Shifts
- Local Loyalty Leader: In Q1 2026, Las Vegas achieved a local renter loyalty rate of 70%, the highest among the 50 largest markets, indicating that softening rents and a strong job market encourage residents to stay, enhancing the competitiveness of the rental market.
- External Demand Attraction: Raleigh attracted 69.1% of its rental views from outside the metro in Q1 2026, primarily due to its relatively affordable rents and strong job opportunities, showcasing the market's strong appeal to external renters, which could drive local economic growth.
- San Francisco Market Shift: San Francisco's rents rose by 1.2% year-over-year in May 2026, contrary to national trends, while local renter loyalty increased from 44% in 2020 to 55%, indicating that the AI and tech boom is converting renters into homeowners, shrinking the rental market competition.
- Market Trend Analysis: According to Realtor.com data, the dynamics of the rental market not only reflect changes in rent but also reveal tenant mobility and market attractiveness, allowing renters and landlords to leverage this data to optimize rental strategies and enhance market competitiveness.
See More
Rental Market Dynamics: Las Vegas vs. San Francisco Insights
- Renter Loyalty Surge: In Q1 2026, Las Vegas achieved a local renter loyalty rate of 70%, indicating that a combination of softening rents and a robust job market is encouraging renters to stay, reflecting the market's attractiveness and stability.
- External Demand Growth: Raleigh attracted 69.1% of its rental views from outside the metro in Q1 2026, highlighting its appeal to out-of-state renters drawn by relatively affordable rents and strong job opportunities, further stimulating local economic growth.
- San Francisco Market Shift: While national rents generally declined, San Francisco's rents rose by 1.2% year-over-year, with local renter loyalty increasing from 44% to 55%, suggesting that the AI and tech boom is enabling renters to transition to homeownership, altering the rental market landscape.
- Market Competitiveness Analysis: According to Realtor.com data, both renters and landlords can leverage cross-market demand data to identify which markets serve as strong “magnets” for renters and which act as “anchors,” providing crucial insights into rental market competitiveness.
See More
Indiana Claims Top Housing Market Title as New York Falls to Last Place
- Indiana's Rise: Indiana jumps from 4th to 1st place with a score of 76.3, earning an A grade, as typical households spend only 28.3% of their monthly income on mortgage payments, significantly below the 30% affordability threshold, showcasing a successful balance in housing affordability and construction pace.
- New York's Fall: New York scores 8.5, ranking last at 51st, where families must allocate 55.2% of their income to afford a median home price of $668,173, and its permit-to-population ratio of 0.45 indicates a severe supply-demand imbalance in its housing market.
- Growing Regional Divide: All A and B grades are held by Southern and Midwestern states, with Southern states averaging a score of 60.4 and Midwestern states at 60.9, while the Northeast averages only 30.0, highlighting persistent structural challenges in the U.S. housing market.
- Policy Recommendations: The report emphasizes that states improving their rankings are those that build more, regulate less, and deliver affordable housing, contrasting with those at the bottom, urging governments to adopt more permissive zoning and incentives to tackle the 4 million home shortage nationwide.
See More
Analysis of Pricing and Timing in Real Estate Market
- Market Transformation: According to Realtor.com's report, the average home is now selling below its asking price, starkly contrasting the frenzy of 2021 and 2022, indicating that buyers have gained significant leverage in pricing decisions.
- Four-Week Window: Homes that close within four weeks sell for 1.8% above the average for comparable homes, while those lingering for 18 weeks close 1.3% below expectations, highlighting the critical impact of timing on final sale prices.
- Price Adjustment Peaks: The first month on the market is when price reductions peak, as sellers who overprice their homes often scramble to cut prices, reflecting the market's rapid feedback on pricing strategies.
- Regional Disparities: The Northeast remains the only region where average home prices exceed asking prices, while the South and West face declining sale prices due to increased inventory, illustrating significant regional market differences.
See More
Record Number of Young Adults Living with Parents Amid Housing Crisis
- Record Co-Residence: In 2025, 25.2 million adults under 35 lived with their parents, surpassing the pandemic peak, indicating a housing affordability crisis rather than a lack of jobs, highlighting ongoing pressures in the housing market.
- Rising Housing Costs: The national median home listing price reached $430,000, 34.4% higher than 2019, while median asking rent hit $1,673, up 17.9% from 2019, making independent living financially unattainable for many young adults.
- Strong Employment Rates: Approximately 70% of young adults living with parents are employed, many holding college degrees, yet high housing costs prevent independence, illustrating that this is a supply issue rather than an employment issue.
- Delayed Household Formation: The data reveals that the never-married rate among 25 to 34-year-olds has risen from 79% in 2000 to 90%, indicating a trend of delayed household formation, resulting in unmet latent housing demand in the market.
See More
Record Number of Young Adults Living with Parents Amid Housing Crisis
- Record Co-Residence: In 2025, over 25.2 million adults under 35 lived with their parents, marking a historic high that reflects the ongoing rise in housing costs, which has made independent living unattainable for many, indicating a significant supply-demand imbalance in the housing market.
- Rising Housing Burden: The national median home listing price has reached $430,000, a 34.4% increase from 2019, while the median asking rent stands at $1,673, up 17.9% from 2019, making independent living financially unfeasible for millions of young adults.
- Employment vs. Living Arrangements: Despite approximately 70% of adults aged 25 to 34 being employed, the high housing costs prevent them from achieving independence, highlighting that this is a supply issue rather than an employment issue, revealing unmet housing demand in the market.
- Delayed Household Formation: The data shows that about 90% of adults aged 25 to 34 living at home are never married, with the proportion holding a four-year degree rising to one-third, indicating a trend of delayed household formation that exacerbates pressures on the housing market.
See More
Rental Market Dynamics: Las Vegas Leads, San Francisco Shifts
- Local Loyalty Leader: In Q1 2026, Las Vegas achieved a local renter loyalty rate of 70%, the highest among the 50 largest markets, indicating that softening rents and a strong job market encourage residents to stay, enhancing the competitiveness of the rental market.
- External Demand Attraction: Raleigh attracted 69.1% of its rental views from outside the metro in Q1 2026, primarily due to its relatively affordable rents and strong job opportunities, showcasing the market's strong appeal to external renters, which could drive local economic growth.
- San Francisco Market Shift: San Francisco's rents rose by 1.2% year-over-year in May 2026, contrary to national trends, while local renter loyalty increased from 44% in 2020 to 55%, indicating that the AI and tech boom is converting renters into homeowners, shrinking the rental market competition.
- Market Trend Analysis: According to Realtor.com data, the dynamics of the rental market not only reflect changes in rent but also reveal tenant mobility and market attractiveness, allowing renters and landlords to leverage this data to optimize rental strategies and enhance market competitiveness.
See More
Rental Market Dynamics: Las Vegas vs. San Francisco Insights
- Renter Loyalty Surge: In Q1 2026, Las Vegas achieved a local renter loyalty rate of 70%, indicating that a combination of softening rents and a robust job market is encouraging renters to stay, reflecting the market's attractiveness and stability.
- External Demand Growth: Raleigh attracted 69.1% of its rental views from outside the metro in Q1 2026, highlighting its appeal to out-of-state renters drawn by relatively affordable rents and strong job opportunities, further stimulating local economic growth.
- San Francisco Market Shift: While national rents generally declined, San Francisco's rents rose by 1.2% year-over-year, with local renter loyalty increasing from 44% to 55%, suggesting that the AI and tech boom is enabling renters to transition to homeownership, altering the rental market landscape.
- Market Competitiveness Analysis: According to Realtor.com data, both renters and landlords can leverage cross-market demand data to identify which markets serve as strong “magnets” for renters and which act as “anchors,” providing crucial insights into rental market competitiveness.
See More
Indiana Claims Top Housing Market Title as New York Falls to Last Place
- Indiana's Rise: Indiana jumps from 4th to 1st place with a score of 76.3, earning an A grade, as typical households spend only 28.3% of their monthly income on mortgage payments, significantly below the 30% affordability threshold, showcasing a successful balance in housing affordability and construction pace.
- New York's Fall: New York scores 8.5, ranking last at 51st, where families must allocate 55.2% of their income to afford a median home price of $668,173, and its permit-to-population ratio of 0.45 indicates a severe supply-demand imbalance in its housing market.
- Growing Regional Divide: All A and B grades are held by Southern and Midwestern states, with Southern states averaging a score of 60.4 and Midwestern states at 60.9, while the Northeast averages only 30.0, highlighting persistent structural challenges in the U.S. housing market.
- Policy Recommendations: The report emphasizes that states improving their rankings are those that build more, regulate less, and deliver affordable housing, contrasting with those at the bottom, urging governments to adopt more permissive zoning and incentives to tackle the 4 million home shortage nationwide.
See More
Analysis of Pricing and Timing in Real Estate Market
- Market Transformation: According to Realtor.com's report, the average home is now selling below its asking price, starkly contrasting the frenzy of 2021 and 2022, indicating that buyers have gained significant leverage in pricing decisions.
- Four-Week Window: Homes that close within four weeks sell for 1.8% above the average for comparable homes, while those lingering for 18 weeks close 1.3% below expectations, highlighting the critical impact of timing on final sale prices.
- Price Adjustment Peaks: The first month on the market is when price reductions peak, as sellers who overprice their homes often scramble to cut prices, reflecting the market's rapid feedback on pricing strategies.
- Regional Disparities: The Northeast remains the only region where average home prices exceed asking prices, while the South and West face declining sale prices due to increased inventory, illustrating significant regional market differences.
See More
