I’m a Top Real Estate Agent: Here Are the 6 Most Unexpected Housing Market Trends for 2025
The future is coming at us fast, and 2025 will be here before we know it. Before the ball drops in Times Square, some of us want to know what to expect in the year to come. If you’re looking into real estate, it would be smart to investigate some of the trends heading our way.
GOBankingRates spoke to experts in the field to get their opinions on where the market is headed – and why. Here are the six most unexpected housing market trends for 2025, according to top real estate agents.
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Walkable Suburbs Are the New Hot Spots
Forget about the urban versus suburban debate. The future is all about the best of both worlds.
“The pandemic led to a boom in the suburbs, but what’s interesting is that we’re not seeing a retreat back to city living quite like many predicted,” said Yawar Charlie, director of Luxury Estates Division at Aaron Kirman Group, Christie’s International. “Instead, there’s a demand for ‘walkable suburbs’ — communities that give you the space and quiet of suburban life, but with walkability and access to shops, restaurants and entertainment.”
Charlie predicted we’ll see more mixed-use developments popping up in traditionally suburban areas. So if you’re house hunting in 2025, don’t be surprised to find that white picket fence right next to a trendy coffee shop.
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Multigenerational Living Goes Mainstream
Gone are the days when moving in with your parents was a last resort. In 2025, it might just become the norm.
“One unexpected trend we’re seeing is the rise of multigenerational living. It’s not just a response to affordability; it’s becoming a lifestyle choice,” Charlie shared. “Families are pooling their resources to buy larger homes that accommodate grandparents, parents and kids under one roof.”
According to Charlie, about 15% of U.S. homebuyers are now considering multigenerational homes. Even more impressive: Builders are taking note, designing homes with multiple living spaces or in-law suites.
The ‘Hybrid Home’ Takes Center Stage
With remote work here to stay, homes in 2025 will need to do a lot more heavy lifting.
“We’re seeing the ‘hybrid home’ trend emerge. Buyers aren’t just looking for a house — they want a space that can serve multiple purposes: home, office, gym, school and entertainment area,” Charlie explained.
So if you’re in the market for a new home, consider how flexible the space is. That spare bedroom might need to pull double duty as a home office or a yoga studio.
Tiny Homes Make a Big Splash
In a surprising twist, tiny homes are set to become a big deal in 2025.
“This one may seem surprising, but tiny homes are gaining traction in unexpected places,” Charlie said. “The affordability crisis is pushing people to rethink what they really need in a home.”
Whether you’re a retiree looking to downsize or a first-time buyer trying to get a foot on the property ladder, 2025 might be the year you think small to win big.
Climate Change Reshapes Buying Decisions
In 2025, your dream location might have more to do with weather patterns than ocean views.
“We’re also seeing climate change influencing where people are choosing to live,” Charlie shared. “Areas that are more resilient to climate impacts — like the Pacific Northwest or parts of the Midwest — are becoming increasingly attractive to buyers.”
So before you make that big move, consider not just the current climate, but what it might look like in 10 or 20 years.
First-Time Buyers Stage a Comeback
After years on the sidelines, first-time buyers are set to make a splash in 2025.
“In 2025, first-time homebuyers are set to regain market share, approaching the long-term average of nearly 40%,” said Patrick Donoghue, VP of market risk for Groundfloor, a real estate lending and investment platform. “While those with ultra-low-rate mortgages remain locked into their current homes, a gradual easing of interest rates will open the door for more first-time buyers, despite ongoing affordability challenges.”
If demand for starter homes goes up, that could be a game changer for real estate. There’s the potential to revitalize neighborhoods and see home sales skyrocket.
It’s Unpredictable
Addy Golembiewski, a realtor with AZ Abode, said that there are two scenarios that are equally possible — but have the opposite effect. “The first is that interest rates don’t drop as much as anticipated, and buyer demand remains stagnant,” she said. “The second is the opposite scenario, where interest rates drop more than expected causing an influx of buyers and a repeat of pandemic-level bidding wars.”
The only thing to predict is the that the market is, well, unpredictable.
The Final Word
The 2025 housing market is shaping up to be anything but predictable.
“2025 is shaping up to be a fascinating year in real estate,” Charlie said. “From lifestyle changes to technology advancements, it’s going to be interesting to see how the market continues to evolve. The key takeaway? Flexibility and adaptability will be the name of the game.”
Whatever your plans are in 2025, if they involve real estate, make sure to bookmark these hot tips and trends.
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This article originally appeared on GOBankingRates.com: I’m a Top Real Estate Agent: Here Are the 6 Most Unexpected Housing Market Trends for 2025
