For the latest homeowner forecast data, check out our 2026 homeownership report
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Survey Finds 67% of Americans are Concerned About the 2025 Real Estate Market
The 2025 housing market brings many challenges to buyers including strategically negotiating realtor commissions and high interest rates. To learn how people are planning to navigate this, we surveyed over 1,000 Americans and dove into their homeownership plans, budgets, and fears for 2025.
Housing Affordability & Concerns: 49% Believe It Is Unrealistic to Buy a Home in 2025
While many Americans desire to buy a home in 2025, 49% feel that it is unrealistic. In fact, 1 in 3 Americans do not consider homeownership to be the American Dream any longer.
Nearly half (47%) cannot afford to buy a home in 2025. Of those who cannot afford to buy, 18% are Gen Z, 51% are Millennials, 24% are Gen Z, and 7% are Baby Boomers.
While buying a home is a goal for many, 12% believe it to be a bad investment and 65% are concerned about the 2025 real estate market. Their concerns are largely due to affordability, as taxes, interest rates, and prices rise faster than personal income. The top 3 concerns include:
- Rising home prices (34%)
- Interest rates (22%)
- Tax rates (7%)
Those who own a home face their own set of real estate challenges – many feel trapped by interest rates. Our report found that 35% of homeowners want to sell in 2025, but they do not want to lose their current rate. Further, 34% now consider their current home their forever home due to interest rates.
Why Americans are Still Home Shopping in a Difficult Housing Market
More than half (51%) of Americans plan to buy a home in 2025: 61% of Gen Z, 52% of Millennials, 46% of Gen X, and 43% of Baby Boomers. Some plan to buy their first home (38%), and others want to buy second homes (19%) or investment properties (12%).
Among those who are planning to buy, 2 in 5 will get help from their families. Most of them are millennials (47%), followed by Gen Z (32%). The top 3 reasons people are buying a home include:
- The desire to own rather than rent
- Need for more space
- Investment opportunity
While 74% of buyers are shopping in the under $500,000 price range, many expect to pay out of pocket. Nearly half (45%) are willing to pay $20,000+ over ask.
Due to a federal lawsuit, home sellers are no longer responsible for paying the realtor fees for both the buyer and seller. In August 2024, the standard 5-7% fee became negotiable for homebuyers to work out with their agent. Our report found that 1 in 4 homebuyers are confused by these changes. While 45% will negotiate commission directly with their realtor, 25% will rely on standard rates. Nearly 1 in 10 (9%) did not know about the commission laws at all.
What are Americans Looking for in a Home?
When it comes to their ideal home location, most choose suburban (49%), followed by urban (28%), and rural (23%). But that is not a dealbreaker for everyone – 2 in 3 would give up their ideal location for the right house. Similarly, 38% would sacrifice newness for the right home.
In this day and age, 1 in 4 Americans feel social pressure to buy a house. While 9 out of 10 respondents prefer to own, a few prefer the convenience of renting. Their reasons include easy maintenance, less permanent (opportunity to move easily), and more modern options available.
Are you planning to buy or sell real estate in 2025? Learn about how a 1031 Exchange can help preserve your assets when buying and selling investment properties. Investors thinking about converting a primary residence into a rental property can learn more about how a 1031 Exchange can help in that process. Learn more about Investment Property Exchange Services, Inc. (IPX1031), the nation’s largest 1031 Exchange company.
Methodology
In December 2024, we conducted a survey of 1,002 people from across the U.S. about looking for homes in 2025. Among respondents, 49% identified as male and 49% as female with an average age of 39.
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Fair Use
When using this data and research, please attribute by linking to this study and citing IPX1031.
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