It is difficult, if not impossible, to objectively assess the myriad factors driving the American housing market. In truth, this massive market is one of the primary cogs of the robust American economy. We can list economic factors, market dynamics, demographic trends, and technological influences as key drivers of the American housing market.
And yet, it remains challenging to assess each component in isolation, without considering its synergistic impact. Truth be told, the housing market is primarily shaped by demand and supply. Currently, demand outstrips supply, making affordable, readily available housing difficult to find. Inflationary pressures only add to the complexity of this market.
Interest rates are a mixed bag and are currently trending lower after several Federal Reserve Bank reserve announcements. However, while mortgage rates have dropped slightly, other costs, including homeowners’ insurance, property taxes, and construction materials, remain relatively high. This has a contractionary effect on overall housing demand. We are only scratching the surface of the US housing market, and already it is abundantly clear that many important variables warrant consideration.
Putting homeownership aside, rental trends are also reshaping the property market. In 2025, more young people are renting than ever before. Renting has become the norm for younger earners, and this is impacting the real estate market on a broad scale. Now, there is less demand for home purchases and more demand for rental properties. An increasing number of homeowners are considering renting their properties to meet current market demand.
Veterans Are Powering Growth in the USA Property Market
Within the broader property market are potent drivers of demand. One such example is demand emanating from veterans, service members, and their eligible family members. Estimates suggest that some 6% of the adult population of the United States is veterans. Statistics from the Pew Research Center and USAfacts peg the number of veterans currently living in the United States at around 18 million.
While this number has declined over the years through natural attrition and lower enlistment rates, it is starting to rise under the current administration. As the American military rebuilds, reshapes, and reinvigorates itself, more service members are joining the ranks. This adds to a future pool of potential homeowners. It comes as no surprise that veterans rank among the unsung growth engines of the American housing market.
Society understands that a debt of gratitude is owed to veterans. They put everything on the line to secure the homeland. It’s only natural that when they return to civilian life, the country they defended repays them. So we offer them something equally valuable: a pathway to homeownership. Traditional mortgages are less appealing to veterans than VA home purchase agreements. For starters, a VA loan does not require veterans to pay a down payment. This eliminates PMI costs.
Equally important are the qualification criteria for eligible veterans. While tax returns and credit scores remain important, the fact that the federal government partially backs VA loans makes it much easier for lenders to facilitate them. Therefore, more veterans are qualifying for VA home purchase agreements. This serves as a catalyst to boost the American housing market, even amid inflationary pressures and low supply.
Homeownership Rates Among Veteran Households Routinely Rank Higher
According to the National Association of Realtors, 76% of veteran households own their own homes (with or without a mortgage balance). This is significantly higher than traditional homeownership rates for non-veterans (estimated at 66%). VA benefits carry substantial weight when it comes to clearing the way towards homeownership, through reputable lenders. Therefore, veterans are a highly favored demographic in the property market.
Realtor Magazine Media inked an article in 2024 stating that approximately 11% of new mortgages are loans from the VA, often with no down payment required for active duty service members and veterans. According to reports, 90% or more of military members take advantage of this benefit when purchasing a home:
- In Des Moines, Iowa, for example, homeownership among veterans is 89%/
- In Augusta, Richmond County, South Carolina, the military household homeownership rate is 81%
- In Columbia, South Carolina, the military household homeownership rate is 81.8%, etc.
Tech Changes Driving the New USA Housing Market
Another important factor driving the current market trends is the switch towards real estate platforms. While many are familiar with platforms like Zillow, Realtor.com, and others, there are also mortgage companies that facilitate online applications for VA loans and traditional mortgages.
This makes it much more accessible for everyday folks and veterans to pursue homeownership. It’s easier than ever for buyers and sellers to connect, offering valuable data and insights that are shaping the property market as we speak. Real-time information, fed by up-to-date statistics and live feeds, makes for an interactive and robust property market.
Clearly, all of these factors feed the property growth engine. Economic changes are front and center: contractionary periods are associated with dips in the property market, while expansionary periods are associated with growth. But it’s the market dynamics that play a big part, with supply and demand and interest rates leading the way.
