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s the 2025 housing market continues to evolve, several key trends and themes will shape the industry. According to Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, a significant divide exists between those who can easily transition between homes and those struggling with affordability.
Lautz notes that despite mortgage rate stability and new inventory, this trend is unlikely to disappear overnight. Instead, she expects housing inventory to continue growing in 2025, driven by increased home building. This will be crucial for first-time homebuyers, allowing them to enter the market and envision making a housing trade.
Lautz also highlights the importance of demographic shifts, including the rise of Gen Z entering the housing market. With this new generation starting their adult lives on more solid financial footing, they may bring a fresh perspective to homeownership. Realtors should be aware that first-time homebuyers are now typically 38 years old, up from their late 20s just 40 years ago.
The role of Realtors will remain essential in 2025, with buyers seeking agents who can not only find the right home but also navigate negotiations and explain the process. Sellers need help pricing their homes competitively, finding qualified buyers, and marketing their properties within a short timeframe.
Affordability remains a significant challenge, even with new inventory. Lautz suggests that smaller homes on the market could help alleviate this issue, as they may better meet the needs of single individuals or couples without children.
Real estate leaders should track key trends, including demographic shifts, housing inventory growth, and affordability challenges. By staying informed, they can adapt their practices to serve their clients effectively in an ever-changing market.
As the Housing Economic Summit approaches on February 26 in Dallas, Lautz emphasizes the importance of real-time information and insights for real estate professionals. With economic and housing data constantly evolving, staying up-to-date will be crucial for success in 2025.
