Where Are Home Prices Headed? Experts Predict Growth Through 2029

Fannie Mae’s year-end survey of 100+ housing experts predicts steady home price growth, with cumulative gains ranging from 14% to 40% between 2025 and 2029. What does that mean for homeowners and buyers?

Expert Forecasts: A Look at the Numbers

According to Fannie Mae’s housing forecasts, price growth is expected to average around 4% annually in 2024 and 2025. When we look further out, cumulative growth projections for the next five years (2025–2029) vary widely:

• 14% cumulative price growth (low end) = ~2.7% annual growth
• 40% cumulative price growth (high end) = ~7% annual growth
• 22% cumulative price growth = steady 4% annual growth over 5 years (compounding included)

Key Insight: Forecasting beyond a few years is always challenging, but the overall consensus points to continued appreciation—good news for homeowners and buyers looking to build equity.

What This Means for Homeowners

Let’s break this down with real numbers:

1. 4% annual price growth over the next two years means a $400,000 home could gain roughly $33,000 in appreciation.
2. 27% cumulative price growth (the average of the forecast range) over the next 5 years would result in $108,000 in appreciation gains on a $400,000 home.
3. If the high end of the range materializes, 40% cumulative price growth could add a substantial $160,000 in equity gains on the same $400,000 home.

Why This Matters

While predicting home prices five years out is never an exact science, these forecasts reinforce a critical point: Real estate remains one of the most reliable ways to build long-term wealth.

Even modest appreciation over the next few years could deliver significant equity gains for homeowners, while buyers entering the market now could benefit from those same price increases.

Takeaway for Buyers and Sellers:
If you’re on the fence about buying, waiting could cost you. Steady price growth—even at the lower end of the forecast—could mean higher costs down the road. For homeowners considering selling, rising equity may offer an opportunity to upgrade, downsize, or cash in on your home’s appreciation gains.