New home sales in April jumped at the fastest pace since early 2023, countering persistent recession predictions from critics of the Trump administration. According to the U.S. Census Bureau and the Department of Housing and Urban Development, sales rose 10.9% from March to a seasonally adjusted annual rate of 743,000 units—up 3.3% from April 2024.
The Midwest led the surge with a 35.5% increase in sales, followed by an 11.7% gain in the South. The Northeast saw a 14.8% decline, reflecting regional disparities. Despite high mortgage rates and ongoing affordability concerns, the housing market continues to show strength in key sectors.
Inventory slightly decreased to 504,000 homes, representing 8.1 months of supply—down from 9.1 months in March. While still above historical norms, the drop signals tightening market conditions. Median home prices inched up to $407,200, while the average price rose to $518,400—a 3.7% monthly and 3.6% annual gain.
Homes priced between $300,000 and $499,999 made up over half of April’s sales, while lower-priced homes under $300,000 accounted for just 15%, underscoring affordability challenges for entry-level buyers.
Regionally, sales reflected broader economic patterns: steady growth in the South and Midwest, and continued softness in the Northeast and West. Revised Census figures dating back to January 2020 slightly adjusted recent trends but did not alter the overall positive trajectory under President Donald Trump’s economic policies.
The data affirm that consumer confidence and household formation continue to support housing demand, despite elevated interest rates. These numbers directly challenge the recession narrative, highlighting economic resilience as the Trump administration’s fiscal and regulatory approach continues to stabilize markets.
Analysts note that the sustained demand for new construction is being driven in part by a persistent shortage in the existing home market, where potential sellers remain sidelined due to locked-in low mortgage rates.
This supply crunch is forcing many buyers into the new home segment, even amid higher borrowing costs. Builders, in turn, have responded with targeted incentives such as rate buydowns and flexible financing options to keep sales momentum strong—a trend that may continue as long as the Trump economy keeps consumer confidence elevated.
