Top Real Estate Trends for 2020
Before you take the plunge into a new career, it's a good idea to research the market. After all, the last thing you want to do is enter a dying industry. If you've been considering a career in real estate, you're in luck! We are diving into the top real estate trends of 2025. On the other hand, if you're already a real estate agent, get a sneak peek below of what to expect in real estate in 2025.
Trend #1: Catering to First-Time Homebuyers
2025 housing market trends will see a significant focus on first-time homebuyers. With more affordable entry points and various assistance programs, the market is becoming increasingly accessible to younger buyers.
Real estate agents can capitalize on this by familiarizing themselves with first-time buyer programs and financial assistance options. Understanding the unique needs and concerns of these buyers will be crucial for success in this segment.
Trend #2: Adapting Strategies for Relocating Clients in a Remote/Hybrid Work Landscape
The shift towards remote and hybrid work is profoundly influencing where people choose to live. Many are relocating from urban centers to suburban or even rural areas, seeking more space and a better quality of life.
Real estate agents must adapt their strategies to cater to these relocating clients, offering insights into local amenities, internet connectivity, and community lifestyle. This trend opens new markets and opportunities for agents willing to explore and understand these new preferences.
Trend #3: Use of Virtual and Augmented Reality in Property Tours
Technology continues to revolutionize the real estate industry, with virtual and augmented reality (VR and AR) leading the charge in 2025. These technologies offer immersive virtual home tours, allowing potential buyers to explore homes from the comfort of their current location.
Real estate agents should invest in VR and AR tools to enhance their listings and attract tech-savvy buyers. This not only improves the client experience but also broadens the reach of property viewings.
Trend #4: Growing Demand for Green/Eco-Friendly Homes and Features
Sustainability is no longer a niche concern; it’s a mainstream demand. Homebuyers in 2025 are increasingly seeking eco-friendly and sustainable home designs with features like solar panels, energy-efficient appliances, and sustainable building materials. In fact, 63% of realtors say eco-friendly features help homes sell faster.
Real estate agents need to be knowledgeable about green certifications and the benefits of eco-friendly homes to effectively market these properties. Emphasizing the long-term cost savings and environmental impact will appeal to the growing segment of eco-conscious buyers.
Trend #5: Increase in New Home Popularity
Although fixer-uppers are undoubtedly great for real estate investors who want to make a quick buck, buyers are increasingly interested in new homes.
In 2025, experts predict a continued rise in new home construction. In fact, housing starts are forecasted to pick up in 2025. As a realtor, your input and assistance with negotiations are invaluable—so make sure you're familiar with new developments in your city.
Trend #6: Wave of Economic Uncertainty
Economic uncertainty continues to influence the real estate market. However, this has worked out well for real estate agents because when the economy is in question, people look to sell their homes.
Surveys show that many Americans believe it is an excellent time to sell their homes. According to the Fannie Mae Home Purchase Sentiment Index® (HPSI), the respondents believing it’s a good time to sell also increased, rising from 64% to 66%. This is good news for agents looking to make higher commissions on home sales.
Trend #7: More Homebuyers Are Millennials
As millennials age and start families of their own, they continue to dominate the real estate market as homebuyers. In fact, millennials surpass baby boomers and become the largest group of home buyers at 38%. Additionally, In 2022, 54% of purchase mortgage applications came from Millennials.
This trend is not predicted to slow down at all. Millennials tend to look in popular cities and middle-to-upper-class neighborhoods, both of which provide ample opportunities for realtors.
Trend #8: Technology is King
As millennials will compose the majority of 2025's homebuyers, realtors must spend more time online. Real estate technology is changing the real estate game. A few ways to get ahead in the millennial market include:
- Creating a personal real estate website
- Keeping your social media up to date
- Staying in touch with clients via emails as opposed to coffee meetings
Depending on your familiarity with those things, there could be a learning curve. Still, the increased use of technology provides flexibility that other careers do not.
Trend #9: Homebuyers are Moving to the Suburbs
It's no surprise that housing prices are on the rise—especially in larger and more populated cities. So, to afford a home, many homebuyers are choosing to move to the suburbs. This trend isn't exclusive to homes either; companies are also moving to second-tier cities so they can afford to expand.
As a real estate agent (residential or commercial), you should expect to spend a lot of time in these second-tier cities. Also, you should consider specializing in that area's real estate market to maximize your revenue.
Trend #10: Increase in Luxury Home Listings
Good news for real estate agents looking to make higher commissions—luxury home listings are expected to increase! Data from Redfin shows that non-luxury inventory declined 2.9% while new luxury home listings are up 18.5% y-o-y.
This makes it the perfect market for buyers looking for an expensive luxury home, as they will have plenty to choose from.
Learn About Real Estate Trends With 360training
Whether you're catering to first-time buyers, leveraging technology, or exploring new markets, the future of the real estate market in 2025 offers numerous opportunities for growth and innovation.
Staying informed and adapting to these trends allows you to position yourself for success in the evolving real estate market in 2025.
But what’s the best way to stay informed? Through education. With Agent Campus by 360training, you can enroll in our Real Estate continuing education (CE) courses, designed to help build on your real estate skills while keeping you up to date on the latest industry trends.
For over 24 years, real estate agents and brokers have trusted us for all their online education needs. Ready to join them? Enroll today!
