BiggerPockets Daily
Zillow Paints an Optimistic Picture for Real Estate in 2025 — With a Note of Caution
Feb 17, 2025
Zillow's forecast for 2025 brings hope with expected increases in inventory and wages, making homes more affordable. The trend towards smaller homes and rising pet ownership might reshape rental markets. However, the specter of higher interest rates looms, challenging potential buyers and investors. Yet, savvy strategies may help investors navigate these financial hurdles, ensuring they remain ahead in an evolving landscape.
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Quick takeaways
- Zillow's forecast suggests a positive shift in the housing market by 2025, driven by increased inventory and higher wages enhancing affordability.
- A growing trend towards smaller, sustainable homes reflects changing buyer priorities, presenting new opportunities for investors in affordable living options.
Deep dives
Optimistic Housing Market Outlook
The housing market is expected to see a positive shift by 2025, according to recent forecasts. Increased inventory and higher wages are projected to enhance affordability, enabling more people to enter the housing market. In particular, Zillow anticipates a modest 2.5% growth in home values, which could provide more opportunities for flippers and landlords as the number of home sales is expected to rise from 4.1 million in 2023 to 4.3 million in 2025. This scenario indicates a year of recovery rather than a dramatic surge in prices, suggesting that the market will become more accessible for various buyers.
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