New Home SalesCENSUS
549K
U.S. Housing Market · 1975 · NBER recession
U.S. Housing Market in 1975
recession
Existing SalesNAR
2.48M
Median PriceNAR
$35,300
30Y MortgagePMMS
9.05%
In 1975, the U.S. housing market recorded existing-home sales averaged 2.48 million, new-construction sales of 549K, and a 30-year fixed mortgage rate of 9.05%.
Existing-home sales rose 9.3% from 1974. the median existing-home price rose 10.3% to $35,300. the 30-year fixed mortgage fell 0.14 percentage points to 9.05%. The NBER classified at least part of the year as a U.S. recession.
By the numbers — 1975: new-home sales 549K, existing-home sales 2.48M, median existing price $35,300, 30-year mortgage rate 9.05%.
Macroeconomic Context
The recession of 1973–75 ended in March 1975 — but the recovery was tentative, and the damage to housing markets was slow to reverse. Real GDP contracted about 0.2% for the full year (severe declines in early quarters offset by recovery in the second half), and unemployment peaked at 9.0% in May before edging down. Inflation began to moderate from its 1974 peak, coming in around 9.1% for the year as oil prices stabilized and the recession reduced demand-side pressure.
The Ford administration and Congress responded with the Tax Reduction Act of 1975, a $22 billion stimulus package that included a one-time tax rebate and investment tax credits. The package was signed in March, helping to stabilize consumer spending and business investment as the economy turned the corner. The Federal Reserve cautiously eased monetary conditions; 30-year mortgage rates dipped slightly to around 9.05% — still extraordinarily high by historical standards — but the direction of travel was downward.
For housing, 1975 was a year of trough and early recovery. New-home sales fell to a postwar low of approximately 549,000 — confirming that the 1974 contraction had continued into early 1975. Existing-home sales, similarly, touched multi-year lows. However, as mortgage rates stabilized and consumer confidence slowly rebuilt through the second half, sales and starts began to recover. The demographic tailwind from baby-boom household formation remained powerful, and pent-up demand accumulated during two years of high rates and recession would fuel a strong rebound once credit conditions eased.