MarketNsight says housing market is stabilizing despite supply and affordability strain

MarketNsight said its June 4 webinar showed U.S. housing demand is holding up even as high rates, low confidence and tight supply continue to squeeze buyers. In Georgia, a new permitting reform law could speed approvals and help expand housing supply, but rising land costs and weak starter-home inventory remain major headwinds. Why it matters: - Housing demand is still active even as affordability and supply problems continue to limit how many buyers can actually close. - Georgia’s new permitting reform could shorten approval delays and help builders add homes faster. - Persistent land-cost inflation and low first-time-buyer participation point to a market recovery that is uneven and still constrained. What happened: - MarketNsight hosted its semiannual MarketWatch webinar on June 4, 2026, for housing industry professionals nationwide. - Chief Market Strategist Eugene James presented the latest housing data. - Pending sales in 2026 are up 2% from the same period last year. - James described the market as not being in a boom, but also not in a bust. The details: - The resale market remains affected by the lock-in effect because 88.6% of households still hold mortgages below 6%. - Builders are using rate buydowns to attract rate-sensitive buyers, and those buydowns have lowered average mortgage rates by 1.3% below standard rates. - Sticker prices have not moved, which continues to pressure buyers who do not have a down payment. - Housing starts remain sluggish, underscoring a long-running shortage of single-family and multifamily homes. - Housing permits have pulled back after two years of momentum from 2019 to 2021. - James tied the slowdown to builder caution around lot prices, materials costs and other inputs. - Georgia has signed a permitting reform bill that James called the biggest legislative win for Georgia builders in years. - The “Shot Clock” bill sets clear timelines for local governments to review building permit applications. - The law takes effect July 1, 2026. - A public permit dashboard is scheduled to launch by early 2028. - County permitting boards will have strict review deadlines under the new law. - Permit denials will have to be written and cite specific regulations. - The reform is intended to increase transparency and reduce carrying costs. - Rising land prices remain the biggest force pushing new-home prices higher in Georgia. - Atlanta lot prices have risen 122% over the past seven years. - Lot costs are taking up a larger share of overall sale prices across markets. - Only 21% of buyers last year were first-time buyers, a record low. - The median age of first-time buyers is now 40. - Many existing homeowners are staying put instead of trading up, which limits resale supply. - Webinar attendees said qualifying for the desired monthly payment at current mortgage rates is a major hurdle for first-time buyers. - MarketNsight said its data shows structural housing challenges will not disappear quickly. - James said pending sales are growing, buyers remain engaged and the industry is adapting. Between the lines: - The data suggests the housing market is being pulled in two directions: demand is proving resilient, but supply-side constraints are still shaping prices and limiting access. - Georgia’s permitting reform addresses one bottleneck, but it does not solve the larger pressures from land costs, financing costs and low inventory. - The rise in first-time-buyer age signals that affordability is delaying entry into homeownership, not just reducing demand. What’s next: - Georgia’s new permitting timelines will begin on July 1, 2026. - The public permit dashboard is expected by the beginning of 2028. - MarketNsight expects industry conditions to improve only as supply catches up with existing demand. - Builders, lenders and local governments will likely keep focusing on faster approvals, lower carrying costs and pricing strategies for rate-sensitive buyers. The bottom line: - Housing demand is not collapsing, but the market is still being held back by supply shortages, high land costs and affordability barriers.