With a career that began in commercial real estate, Matthew Baker has a wealth of experience in the industry. His CRE portfolio includes investments in a medical center and a 17,000 square foot office center in Kentucky, as well as the construction of numerous multi family apartments, condominiums and single family homes across the Southeast region of the U.S. Over the past decade, Baker has studied the regional trends in the Southeast, providing him with unique insights that can help prospective home builders and homeowners navigate the housing market with confidence.
From shifting affordability to housing supply constraints to a cooling market that is less favorable to buyers, Baker has a few suggestions on how one can navigate the rising rates and other regional trends that persist in the Southeast.
A rise in less affordable homes
Over the past decade, housing prices have skyrocketed, far outpacing the rate of inflation. This alarming trend has made the dream of homeownership significantly more expensive, especially for Americans who, on average, earn 1.2 percentage points below the rise in the cost of living over the past four years. The issue of less affordable homes is particularly acute in urban centers in the Southeast, where an increasing number of people are seeking to live near work, entertainment, and essential services like transportation and healthcare.
Matthew Baker suggests that while waiting out this period of low housing affordability and availability, consider multifamily rental property, which has substantially lower upfront costs. Market data for mid-2025 shows that renting a home or apartment is much cheaper than buying a home in most major U.S. markets. And, while waiting, Baker suggests saving that extra money for a larger down payment and using the time to increase your credit score.
Housing demand has outpaced housing supply
There’s no getting around it. There is more demand for quality housing in the Southeast than what the current market can supply. Exacerbating this situation are the higher tariffs, which have not only put construction material costs at a premium price but have also delayed shipments and deliveries in many cases. Economists suggest that it will take many years to correct the housing supply gap. Government statistics demonstrate that while the housing demand has grown by 26 percent, the actual housing stock—housing supply—grew by only 19 percent.
A great way to navigate the lack of homes on the market is to consider leasing a unit in a housing community development. Matthew Baker provides comprehensive real estate solutions to families who need to relocate sooner rather than later. Leasing a home offers several benefits, including reduced maintenance costs and the elimination of funds required for property taxes and down payments. Additionally, renting can provide more flexibility in terms of location and can be a good option for those who are not yet ready to commit to a specific area or property.
Higher mortgage and interest rates
In 2025, the 30-year fixed-rate is projected to rise by 6.3% to 6.8%, adding to the relatively high home prices in the Southeast. From Florida to Kentucky and Texas, the options for homeownership continue to be out of reach for a large portion of America’s population. While consumers wait for potential dips in mortgage rates and more competitive interest rates, they may need to adapt their strategies and consider waiting out this period of uncertainty in the Southeast U.S. housing market.
Matthew Baker believes that strategy and timing are key for prospective homebuyers looking to navigate the Southeast housing market. By partnering with a real estate agent who can help navigate the complexities of the home-buying process and negotiate better mortgage and interest rates, you can feel more in control of your home-buying journey. If you find a home you really love, consider the rent-to-own option, which usually includes a built-in savings plan for the down payment on the house and allows you to lock in the price to purchase.
