U.S. home sales remain mired in a prolonged downturn, with both closed and pending sales stuck near multi-decade lows. According to housing analyst Amy Nixon, the familiar refrain about “low inventory” no longer explains the slowdown.
Many investors are rushing into gold and stocks, but “no one is buying real estate, traditionally considered an inflation hedge,” Nixon wrote last week. “In fact, sales are near 30-year lows.”
Everyone is rushing to buy Gold, Crypto and Stocks. The money supply is there.
undefined Amy Nixon (@texasrunnerDFW) October 9, 2025
Meanwhile, no one is buying real estate, traditionally considered an inflation hedge. In fact, Sales are near 30 year lows!
Why?
The "Low Inventory" excuse from 2021-2023 doesn't work anymore pic.twitter.com/DRdp2g8ULp
Nixon argues that the “low inventory” narrative, which dominated discussion from 2021 through 2023, has lost credibility. She suggests that deeper structural forces are keeping Americans from buying homes, even as other asset classes such as stocks and gold hit new highs.
A chart shared by Nixon, citing data from the National Association of Home Builders, shows that both existing home sales and pending contracts are hovering near their lowest levels since the aftermath of the 2008 financial crisis.
While high mortgage rates remain the most immediate headwind, analysts point to a mix of affordability challenges, demographic shifts, and psychological factors that are suppressing demand.
Even in regions where listings have increased, buyers remain scarce. Nixon noted that inventories have risen sharply in some markets, “yet no one is biting.”
Las Vegas, once among the hottest housing markets in the nation, offers a telling example. According to Nick Gerli of Reventure Consulting, home sales in the city are roughly 45% lower than four years ago, underscoring how demand has evaporated even as more homes hit the market.
There's an alarming decline in homebuyer activity in Las Vegas.
undefined Nick Gerli (@nickgerli1) October 10, 2025
Four years ago, there were 4,200 sales.
Now, there are only 2,300.
That's a 45% drop in demand, the biggest of any major metro in the U.S. Worse yet, Vegas home sales are now at the lowest level in over a decade.… pic.twitter.com/0P264GfkZT
The American Dream is no longer anchored in housing
For generations, owning a home was seen as the cornerstone of the American Dream, offering a symbol of stability, prosperity, and adulthood. However, for many younger Americans, that dream is slipping further out of reach.
With affordability at record lows and economic uncertainty lingering, homeownership is no longer as central to their aspirations as it once was.
Instead, Millennials and members of Gen Z are prioritizing financial flexibility over permanence. Many are focusing on paying down debt, building savings, investing in experiences, or pursuing mobile careers that don’t tie them to a single location.
The cultural narrative around success is shifting from owning a house to achieving financial independence and personal freedom.
According to Realtor.com, the top goal for Gen Z buyers is no longer purchasing a home but paying off debt. “Though Gen Z Americans may dream of homeownership, still-high housing costs mean that stepping onto the property ladder may not be possible at this point in time,” said Hannah Jones, senior economic research analyst at Realtor.com.
With mortgage rates hovering above 6% and home prices near record highs, renting has become the more practical, and often cheaper, option.
A recent report from InvestorsObserver Research found that renting has become universally cheaper than buying in all 50 of the largest metro regions.
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