Moscow, Jan 1 (IANS) – The struggling US housing market in 2024 has severely impacted businesses reliant on home improvement and furnishing purchases, according to a report by local media.
Retail Store Closures on the Rise
Data from Coresight Research indicates that US retailers announced more store closures than openings in 2024, reversing a two-year trend of expansion. The contraction was largely driven by the decline in home sales, with major home retailers like Big Lots and Conn's filing for bankruptcy and planning to shut down hundreds of stores.
Housing Market Trends
Despite a notable improvement in existing-home sales in late 2024—achieving their biggest year-over-year gain in over three years in November—overall home purchases for 2024 are expected to hit their lowest level since 1995, according to a report by The Wall Street Journal (WSJ).
High mortgage rates, which surged again in the summer of 2024, continue to deter potential buyers, with experts predicting further slowdowns in sales activity.
Business Struggles Amid Cool Demand
The housing slump has tipped already-struggling businesses over the edge:
LL Flooring filed for voluntary Chapter 11 bankruptcy in August.
Retailers faced cooling demand for furniture and home-improvement materials, following a pandemic-driven surge in spending during the lockdown period.
Rising Homelessness
Adding to the housing crisis, the US Department of Housing and Urban Development (HUD) reported that 771, 480 people were experiencing homelessness on a single night in January 2024, an 18.1% increase from 2023.
States like Illinois and Hawaii saw the most dramatic rises due to housing affordability issues and increased migrant arrivals, further exacerbating the crisis.