U.S. Home Prices Rise as Buyers Press On

Home prices in the U.S. continued to rise in November, with a 3.8% annual increase, according to S&P CoreLogic Case-Shiller. This marked the 18th consecutive high for the index, with New York, Chicago, and Washington seeing the biggest gains. Despite higher mortgage rates, buyers remained active, benefiting from the highest number of home listings in nearly five years, which helped drive home sales.

However, rising borrowing costs could slow demand in early 2025. According to Redfin, the average 30-year mortgage rate recently surpassed 7%, leading to a 10% drop in pending home sales. Realtor.com’s Hannah Jones warned that this increase in rates could make for a rocky start to the year for buyers.

Court Overturns FCC’s One-to-One TCPA Consent Rule

The Eleventh Circuit Court of Appeals has struck down the FCC’s one-to-one consent rule under the Telephone Consumer Protection Act (TCPA), ruling that it exceeded the FCC’s legal authority. The rule, set to take effect on January 27, 2025, required consumers to give separate, explicit consent for marketing calls from each seller. Businesses had argued that this created unnecessary burdens.

The rule is void with the court’s decision, and marketers will continue operating under existing TCPA guidelines. The FCC may choose to appeal, revise, or abandon the rule altogether, but no new restrictions are in place for now.

Redfin: Renters’ Income Requirement Declines

According to Redfin, renters in the U.S. now need to earn $63,680 to afford the median rent of $1,592, the lowest level since March 2022. This is a 0.4% decrease from last year and 6.4% below the peak in August 2022. Wages for renters have risen, with the median income reaching $54,752 in 2024, up 5.3% from 2023. However, renters still earn about 14% less than needed for the median rent.

Redfin expects rental affordability to improve as wages grow and rent prices stay flat due to the construction of new apartments. The gap between renting and buying may widen, pushing more people, especially younger buyers, to continue renting. Austin, Texas, is the most affordable city for renters, while Providence, R.I., ranks as the least affordable, followed by Miami, New York City, Los Angeles, and Boston.