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edfin has released its predictions for the 2025 housing market, and they may surprise you. According to Redfin, renters will have the upper hand next year due to several factors.

    The median U.S. home-sale price is expected to rise by 4% in 2025, mainly because there won't be enough new inventory to meet demand. This increase in prices will make buying a home less affordable for many people, causing some to opt for renting instead. Additionally, mortgage rates are predicted to remain high, averaging around 6.8%, making it even more challenging for buyers.

    On the other hand, rental affordability is expected to improve in 2025, with the median U.S. asking rent remaining flat year over year. This, combined with rising wages and an increase in new rentals coming on the market, will make renting a more attractive option for many Americans.

    Redfin also predicts that areas prone to natural disasters, such as coastal Florida and wildfire-prone parts of California, will experience slower price growth or decreased home prices due to increased risk. As a result, people may move to safer regions in the Midwest and Northeast.

    Another interesting prediction is that Gen Zers will continue to face challenges when it comes to buying their first homes. Affordable options will be snapped up by older buyers who are priced out of higher price tiers, forcing younger generations to rent or live with family until well into their 30s.