What should I know about the 2025 housing supply and demand trends?

The 2025 housing supply and demand trends will likely be influenced by several factors. On the supply side, housing inventory may improve slightly as builders adjust to economic conditions and rising construction costs. However, the shortage of affordable homes, especially in high-demand urban areas, is expected to persist, keeping competition high for lower-priced properties. On the demand side, millennials and Gen Z are expected to continue driving the market, as more people in these age groups reach prime homebuying years. While rising interest rates may dampen demand somewhat, demand could still be strong in areas with job growth, good schools, and desirable amenities. Additionally, migration patterns could shift, with more people moving to suburban or less expensive markets due to remote work flexibility. Overall, while some improvement in inventory may occur, demand for housing is expected to remain robust, particularly in growing regions.