The coming year will be challenging for the U.S. housing industry, as affordability, low inventory, the prospect of tariffs on imported construction materials, and immigration limits could constrain growth. However, there will be pockets of strength across industries and local markets.
Still, some experts predict good times for the housing industry in 2025, though the prospects vary by industry segment and geographical region.
Derrick Barker, CEO and co-founder of Nectar, sees the multifamily segment remaining strong heading into 2025 despite current pressure on rents from new deliveries.
“Once this wave of supply gets absorbed—which population trends suggest it will—we should see rent growth resume,” he told The Epoch Times via email.
“The incoming Trump administration could accelerate this recovery by establishing new ‘ultra-low tax and regulation zones’ and streamlining financing regulations. With a national housing shortage of 2 million homes, the real opportunity lies in addressing the affordable housing crisis.”
Ryan Meagher, pre-construction manager at BVM Contracting, said the densification of residential properties is another housing trend that will continue its momentum into 2025.
“There will be more properties with multiple dwelling units (secondary suites, accessory dwelling units, basement apartments) that will help the homeowners pay their mortgages and combat the housing shortage that some larger cities are seeing,” he told The Epoch Times via email.
Ryan Barone, co-founder and CEO of RentRedi, says another segment that could fare well in 2025 is home improvement.
“An internal survey of 3,500 RentRedi landlords reveals that at least 80 percent of them plan to invest in home improvement projects for their rental properties in 2025,” he told The Epoch Times via email.
Additionally, internal designing could thrive in the new year, according to Bree Steele, interior designer and trade accounts manager at RJ Living.
That’s due to the proliferation of smart devices that have become an integral part of the modern home.
“Smart home technology is shaping how we design interiors,” she told The Epoch Times via email.
“I’ve worked with clients to integrate app-controlled lighting, automated blinds, and smart thermostats seamlessly. Homes feel increasingly comfortable installing this kind of technology, and we will see more of it in 2025.”
Locality will also be a factor in shaping housing rends in 2025, as supply and demand conditions differ across the nation.
“Areas with low inventory (the Northeast) and soft demand will see less than a 5 percent jump in activity,” Jeff Lichtenstein, CEO and broker at Echo Fine Properties, told The Epoch Times via email.
“Remember that 2024 saw its slowest growth since 2024, so historically, even a 5 or 10 percent bump is still low. Right now, we are seeing more activity from pent-up demand, with people holding off due to uncertainty of the November election. Those in the wealthier category purchase more as they know taxes and capital gains will be lower with the Trump administration.”
Lichtenstein said regional laws and regulations will influence sales as well.
“The condo market in South Florida is a complete buyers-market and has seen its inventory jettison upward to over 8 months of supply and nearly a 100 percent jump in inventory from last year at this time,” he said. “This is due to good regulations resulting from the tragic Surfside building collapse.”
But he’s concerned about a big unknown: how the new administration will affect the markets.
“Mass deportation and tariffs will all impact inflation and the markets,” he said.
