A new year brings a fresh start and a world of new possibilities. For plenty of people, one major resolution may be buying a new home. Yet before diving into the purchasing process, potential homebuyers may be on the lookout for what’s next in the market.
From rates to design changes and more, check out six of the top trends to watch for in 2025:
1. Watching for Rates
Interest rates took a steep climb beginning in 2022 after hitting a 14-year average high of 5.53%. By November 2024, the average rate stood at 6.81%. Consumers and builders alike have struggled to keep up with these increased rates after more than a decade of averages well below the 5% mark.
Experts think that while rates will remain relatively high compared to the previous decade, there is some evidence to suggest they may (slowly) lower. Still, people shopping for homes in 2025 will certainly have rates in the back of their minds throughout the process.
2. Wait-and-See Shoppers
As a result of price squeezes in the market, homebuyers may be more likely to take a wait-and-see approach to their shopping.
This cautiousness means people could rent for longer periods of time or stay in their current homes instead of upgrading to something with more space or enhanced features. Longer shopping cycles offer buyers more time to identify exactly what they want and need in a new home — and save up for when the time is right.
Thankfully, shopping hasn’t completely halted. Homebuyers may be squeezed but they’re still searching. The primary difference? They’re choosier about what they want (even buyers with deeper pockets).
3. Shifting Locations
High mortgage rates might lead to another possible outcome: shoppers searching for homes that better fit their budgets.
When someone decides they’re ready to transition to becoming a homeowner, there’s a good chance they have a (rough) idea of not just what they want in a home but where they want that home to be. However, higher monthly payments can mean swapping location for affordability. Thankfully, plenty of builders construct communities in areas near or accessible to popular destinations.
One example: Legend Homes maintains a strong presence in Conroe, a community just north of Houston and The Woodlands. Here, families can send their children to Conroe ISD schools while avoiding especially high mortgage payments in areas with higher living costs.
4. Durable Designs
Higher prices and interest rates mean that the days when most buyers could home-hop from one to the next in several years are gone. In response, shoppers are searching for homes built with durable materials designed for the long run.
5. Streamlined Spaces
Homebuilders like Legend recognize that buyers want to get the most home for their money, especially when prices and rates are a bit higher than in recent history.
To solve for these constraints, builders are constructing floorplans that maximize flexibility and functionality. For example, flex spaces that can be converted into nurseries, playrooms, and at-home gyms offer owners adaptability without unnecessarily increasing a home’s prices.
Another solution some builders include in new homes is “snug spaces” or “sanctuary spaces.” These aren’t distinct rooms in a home but do afford some separation for people to retreat, decompress, or rest during busy days.
6. Tech Conveniences
Thanks to advancements in technology, buying a home has never been easier. Now, someone can purchase a home from halfway across the world, thanks to tools like virtual tours and online sales staff who can help every step of the way.
Another exciting resource: self-tour functionality. Instead of trying to align schedules with open hours and onsite sales professional availability, shoppers can use unique codes to enter and tour new homes for sale when most convenient for them.
