While housing market forecasts for 2025 are rapidly changing, there are still important themes and trends that real estate leaders need to look at to best serve their clients and businesses. Jessica Lautz, deputy chief economist and vice president of research at the National Association of Real Estate Agents and upcoming speaker at the Housing Economic Summit, sat down with HousingWire’s Senior Director of Events Brena Nath to answer a few questions about what she thinks can be expected in real estate in 2025. Check out what she had to say below and subscribe to the Economic top in the field of housing on Feb. 26 in Dallas to hear her full session on the economics of real estate brokerage.
HW: Which housing trends do you think will continue in 2025 and why?
JL: There is currently a divide in the housing market between those who can easily move from one home to another, and those who struggle to enter the market due to affordability. I don’t think this trend will disappear overnight, even if mortgage rates remain stable and new inventory enters the market.
HW: What are you most optimistic about when it comes to next year?
JL: The housing stock has increased in recent months. Housing construction is expected to increase by 2025. Increased housing inventory is critical for homebuyers looking to enter the home trade and for first-time homebuyers to enter the market.
HW: What trend will you focus on next year and why?
JL: I will be looking at starters on the housing market, but also at how Gen Z enters the housing market. Many indicators show that they have learned financially from the missteps of millennials and are starting their lives as young adults on a stronger footing. If we see them hit the market, it will be encouraging.
HW: Let’s look at some demographic shifts. Demographic trends are changing: from fewer people having children to an increase in the average age of home sellers. What should brokers 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 what type of housing people need, what the ideal location is and where future demand will come from. The average first-time home buyer is now 38 years old, which is more than a buyer in their late twenties forty years ago. This home buyer may be at a different point in their life and have different expectations for their home and the duration of their ownership.
HW: How do you think the role of real estate agents will change next year?
JL: The role of real estate agents remains essential for buyers and sellers. For homebuyers, they not only want an agent to help find the right home, but also to assist with negotiations and explain the process. Home sellers need help pricing the home competitively, finding a qualified buyer, and marketing the home, all within a short time frame.
HW: What are some of the biggest challenges facing affordability for 2025?
JL: Even with the new housing stock, affordability remains a challenge. Some of the problems may arise from the available housing stock. The majority of the homes purchased are single-family homes with three bedrooms and two bathrooms. That cookie-cutter house may not meet the needs of one person who may have a fur baby but no child in tow. Bringing smaller homes onto the market can contribute to housing affordability.
HW: If I’m a real estate leader, what are the key points in this data that they should be tracking in the coming year?
JL: Real estate leaders all have niches in which they become experts. Knowing how these trends are developing is essential to building their practice and serving their clients.
HW: To pack, as we get closer to the Economic top in the field of housing in Dallas on February 26, where you are a speaker, why do you think information and insights about the housing market are so important, especially for real estate leaders?
JL: Between now and February it is inevitable that there will be changes in the economic and housing figures. Knowing what the changes are and why they matter in real time only increases the real estate professionals’ game.
Register today to attend Economic top in the field of housing and hear more about it Jessica Lautz. The summit aims to give you a comprehensive understanding of the economic factors driving the housing market in 2025 – and what it all means for your business.
