All economic activity revolves around demand and supply, with scarcity playing an integral part in the equation. In a situation where demand for housing outstrips supply, a housing shortage follows. Conversely, when the supply of housing exceeds demand, a housing surplus results. These realities are opposite ends of the housing spectrum.
In the case of a tight housing market, economic analysts point to a situation where the demand for housing exceeds the supply of housing. This invariably drives up the prices of existing homes, making it more difficult for first-time homebuyers. Given the inflated costs, many aspiring homeowners are basically priced out of the market. This encourages more people to opt for lower-cost housing and rentals.
Stabilizing Economically Under Tight Market Conditions
In today's market, existing homeowners are weighing every option available to strengthen their financial footing. Financial experts note that one option available to eligible veterans is a VA cash out refinance, which allows them to tap into the equity they've already built. Homeownership advisors suggest that these funds can sometimes be used to consolidate debt, cover major expenses, or invest in home improvements that may help raise long-term property value.
Analysts emphasize that this approach involves leveraging earned benefits to create flexibility, particularly when high mortgage rates and tight inventory make selection choices challenging. For many service members, this can provide a means of maintaining financial stability. Given the trying conditions facing job seekers, it makes sense to explore as many affordable cash generation options as possible.
Regarding the US housing market, this is the current status quo. It's a result of high home prices, low inventory, and persistently high mortgage rates. This sharply increases borrowing costs, which, alongside low inventory levels, results in stagnant sales and fewer listings on real estate platforms. We see evidence of this everywhere - Zillow, Realtor, and scores of others.
These problems are compounded by the fact that real wage growth simply cannot keep pace with the inflated costs of new and existing homeownership. As a result, buyers are pressed for choices and invariably compete with one another for purchases. This can lead to bidding wars. And yes, these bidding wars do not serve the interests of buyers.
Current statistics on home sales, inventory levels, and the state of the housing market are summarized in the following table:
|
Metric |
Figure |
Context |
|
Total US Housing Market Value (June 2025) |
$55.1 trillion |
Record high, per Zillow |
|
Growth Since 2020 |
+57% ($20 trillion) |
Almost triple normal growth (normally ~20%) |
|
Contribution of New Builds |
12.5% of growth |
Remainder due to appreciation of existing stock |
|
California Housing Market |
$10.8 trillion (–$106B in 1 year) |
California is still the nation's largest market despite a recent decline |
|
New York Housing Market |
$4.3 trillion (+$216B in 1 year) |
Only big state with annual growth, 25% of US gains |
|
Florida Housing Market |
$3.7 trillion (–$109B in 1 year) |
Pandemic boom reversed; sharpest drop nationwide |
|
Texas Housing Market |
$3.3 trillion (–$32B in 1 year) |
Excess new construction pressured prices downward |
|
Nationwide Seller vs Buyer Imbalance |
500,000 more sellers than buyers |
Reflects supply-demand imbalance driving a tight market |
Source: Newsweek
Affordability vs Accessibility in the Housing Market for Veterans
Recall that affordability challenges are real for first-time buyers across the board. Veterans are not exempt. High rates, stagnant wages, and steep down payments put ownership out of reach for millions. Yet service members have unique advantages. Industry observers point out that refinancing pathways tied to VA benefits can lower immediate costs and provide access to home equity when the financial market feels unforgiving. By drawing on these earned entitlements, veterans can bypass barriers that sideline others, from unaffordable interest rates to daunting upfront costs.
We know that there is a real wage gap between the cost of homes and what households actually earn. All of us are feeling the pinch in this economy. This is exacerbated by people seeking job opportunities in a tight labor market, where an unfavorable applicant-to-job ratio makes getting ahead that much more difficult.
Median monthly payments continue to surge well beyond the reach of millions of renters. Wages continue to lag behind real cost increases, placing an unfair burden on the population. Peripheral costs, such as closing costs, add to the down payment burden, leaving many first-time homebuyers on the sidelines. As far as veterans are concerned, housing analysts highlight that new programs and benefit structures may provide alternative routes. Fortunately, there are still pathways to homeownership for those who have served their country.
Experts note that qualified borrowers can access programs that minimize barriers to entry, including down payments and unfavorable interest rates. These VA-related benefit programs extend beyond traditional loans, offering ways for veterans to access equity when it matters most. By tapping into their home value through these beneficial channels, veterans can transition away from stressful financing to the convenience, comfort, and cost-effectiveness of their home equity.
For veterans, these programs are so much more than technical fixes: they are structural assists. Analysts emphasize that such tools allow veterans to draw on earned benefits and sidestep barriers that keep many other buyers locked out. For service members, this can turn home equity into stability in a market defined by scarcity. That’s the definition of a value-added benefit for service members.
