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What Will Shape the 2025 Housing Market?

Jan 81 min read

Industry sources weigh in on possible answers.

Why do people choose to move? • Closer to family / friends: 30% • More home for their money: 21% • Lower taxes: 16% • Safer area: 16% Remote work gives buyers flexibility when choosing where to live. • 43% of buyers worked remotely and were not influenced by job location • 37% worked partly in-office and were influenced by job location • 2% moved due to return-to-office changes Nearly half of all buyers moved to the South. • South: 46% • West: 25% • Midwest: 18% • Northeast: 11% Most people didn’t move too far. • Different state: 36% • Same state, different area: 21% • Same area, different city: 21% • Same city: 21% • Outside U.S.: 1% 18% of buyers moved back to an area they had lived in before. Among repeat buyers: • 74% sold their previous residence • 20% kept their previous residence as an investment, rental, or vacation property When choosing their home, buyers considered more than home interior. • Outdoor space: 42% • Quieter area: 24% • Walkability / neighborhood amenities: 19% • Better access to parks & trails: 8%
Home sales lagged in 2024 amid elevated rates, high prices, and low inventory. Will 2025 bring more of the same, or are changes on the horizon? See what industry experts are forecasting for the new year.
Why do people choose to move? Closer to family / friends: 30%. More home for their money: 21% • Lower taxes: 16% • Safer area: 16% Remote work gives buyers flexibility when choosing where to live. • 43% of buyers worked remotely and were not influenced by job location • 37% worked partly in-office and were influenced by job location • 2% moved due to return-to-office changes Nearly half of all buyers moved to the South. • South: 46% • West: 25% • Midwest: 18% • Northeast: 11% Most people didn’t move too far. • Different state: 36% • Same state, different area: 21% • Same area, different city: 21% • Same city: 21% • Outside U.S.: 1% 18% of buyers moved back to an area they had lived in before. Among repeat buyers: • 74% sold their previous residence • 20% kept their previous residence as an investment, rental, or vacation property When choosing their home, buyers considered more than home interior. • Outdoor space: 42% • Quieter area: 24% • Walkability / neighborhood amenities: 19% • Better access to parks & trails: 8%

*The statistics listed herein are not facts but predictions made by the third-party sources listed below. These figures do not necessarily represent the opinions of those sharing this information.

Sources:
  1. Freddie Mac Primary Mortgage Market Survey.
  2. National Association of Realtors®, “Housing Hot Spots for 2025: Top Markets Amid Stabilizing Rates.”
  3. Realtor.com® 2025 Housing Forecast.
  4. Fannie Mae, “Expert Panel Upwardly Revises Home Price Growth Outlook, Still Expects Deceleration in 2025 and 2026,” December 5, 2024.
  5. Redfin, “Redfin’s 2025 Predictions: Pent-Up Demand Will Lead to More Home Sales, But Many Would-Be Buyers Will Opt to Rent,” December 4, 2024.
  6. HousingWire, “2025 Housing Market Forecast: The Path to Home Sales Recovery.”
  7. Federal Open Market Committee, Transcript of Chair Powell’s Press Conference, December 18, 2024.
  8. Freddie Mac, “Economic, Housing and Mortgage Market Outlook – November 2024 | Spotlight: Housing Supply,” November 24, 2024.
  9. Mortgage Bankers Association (MBA), Mortgage Finance Forecast, November 21, 2024.
  10. Zillow Housing Market Report, November 2024.
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