Unsold New Homes Surge to 16-Year High, Threatening U.S. Economy

The U.S. housing market is facing its largest inventory of unsold new homes since the 2009 financial crisis, with 121,000 completed properties sitting on the market in July. Data from the Census Bureau and HUD shows new home sales dropped to 652,000, down more than 8% from a year ago, while the median price has fallen 5.9% to $403,800. Experts point to high mortgage rates, weak demand, and broader economic uncertainty as key factors driving the slowdown. With nearly 15% of sales falling through in July and buyers holding more leverage, economists warn housing could become a major drag on overall growth unless rates ease or demand rebounds.