What Real Estate Leaders Need To Know About The 2025 Housing Market

Despite 2025 housing market predictions changing fast, there are still key themes and trends for real estate leaders to watch to best serve their clients and business. Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors and upcoming speaker at the Housing Economic Summit, sat down with HousingWire’s Senior Director of Events Brena Nath to answer a few questions on what she thinks is to come for real estate in 2025. See what she had to say below and register today for the Housing Economic Summit on Feb. 26 in Dallas to hear her full session on real estate brokerage economics.

HW: What housing trends do you think will continue in 2025 and why? 

JL: There is a divide right now in the housing market between those who can easily make housing trades from one home to the next and those who are struggling due to affordability to enter the market. I do not think this trend will go away overnight, even with mortgage rate stability and new inventory in the market.

HW: What are you most optimistic about when it comes to next year?

JL: Housing inventory has been climbing in recent months. Home building is expected to increase in 2025. More housing inventory is critical for homebuyers to envision making a housing trade and for first-time homebuyers to be able to enter the market.

HW: What’s a trend you’ll be focused on next year and why?

JL: I will be watching first-time homebuyers, but also how Gen Z starts to enter the housing market. From many indicators they have learned from the missteps of Millennials financially and are starting their young adult lives on more solid footing. If we start to see them enter the market, it will be encouraging.

HW: Let’s dive into some demographic shifts. From fewer people having children to the average age of a home seller going up, demographic trends are shifting. What should Realtors know about this information?

JL: It is important for the entire housing ecosystem to know who is active in the housing market. It helps to understand the type of homes people need, where is the ideal location, and where future demand is coming from. The typical first-time home buyer is now 38, which is up from a buyer in their late 20s 40 years ago. This homebuyer may be in a different point in their life and have different expectations of their home and length of ownership.

HW: How do you think the role of Realtors will change next year?

JL: The role of Realtors will continue to be essential to buyers and sellers. For homebuyers they want an agent not only to help find the right home, but also to help with negotiation and explain the process. Home sellers need help pricing the home competitively, finding a qualified buyer, marketing the home, and doing so all within a short timeframe.

HW: What are some of the greatest challenges to affordability for 2025?

JL: Even with new housing inventory, affordability continues to be a challenge. Some of the challenges may stem from the housing stock available. The majority of homes purchased are single-family homes with three bedrooms and two bathrooms. That cookie cutter home may not meet the needs of a single person who may have a fur baby, but not a child in tow. Having smaller homes on the market could help with housing affordability.

HW: If I am a Real Estate leader, what are key points in this data that they should track over the next year?

JL: Real estate leaders all have niches that they become experts in. Knowing how these trends are evolving is essential to building their practice and being able to serve their clients.  

HW: To wrap, as we get closer to the Housing Economic Summit in Dallas on Feb. 26, which you’re a speaker at, why do you think information and insights on the housing market is so important, especially for real estate leaders?

JL: Between now and February, it is inevitable that there will be changes in economic and housing data. Knowing in real time what the changes are and why they matter just ups the game of real estate professionals.

Register today to attend the  Housing Economic Summit and hear more from Jessica Lautz. The summit is designed to give you a comprehensive understanding of the economic factors driving the housing market in 2025 — and what it all means for your business.