A new survey conducted by REsimpli reveals that 72.58% of Americans would increase their mortgage terms to be able to finance a home purchase in 2025.
This study gathered and analyzed data from 1,200 US citizens who are planning to either buy a new home or are looking to upgrade to a new home in 2025.
Key Findings
72.58% of people would extend mortgage terms to buy homes in 2025
72.58% of people would extend their mortgage term to lower their monthly payments, easing their transition into homeownership.
Despite 25.50% of probable home buyers being mostly concerned about the rising mortgage rates, only 27.42% of people would not extend their mortgage terms.
45.58% of people are concerned about high property prices in 2025
High property prices remain the biggest concern for 45.58% of potential buyers coming into 2025.
The remaining people are mostly concerned about rising mortgage rates (25.50%), property taxes and maintenance costs (17.42%), and down payment requirements (11.50%).
80.42% of people would buy an affordable home despite renovation costs
An overwhelming 80% of respondents would consider purchasing a home requiring significant renovation if it means better affordability.
This openness to fixer-uppers suggests buyers are unable to find affordable homes on the market, as only 19.58% of people would choose otherwise.
62.83% of people are looking to buy homes for a lifestyle change
The survey reveals that lifestyle changes are the primary motivation for 62.83% of potential homebuyers.
This significantly outweighs the other factors such as investment opportunities at 18.58%, job relocation at 7.50%, and remote work flexibility at 11.08%. This trend aligns with recent market analyses suggesting a fundamental shift in how Americans approach housing decisions.
65% of people believe cultural shifts will drive housing demand in 2025
A significant 65% of respondents believe cultural shifts, particularly remote work and lifestyle changes, will be the driving force of housing demand in 2025.
The post-pandemic period has seen a significant amount of companies and people shifting to remote work. However, 35% of people do not believe cultural shifts will create a significant change in housing demand.
Urban areas lose interest as 56% would opt for suburban housing
56% of respondents prefer suburban locations in their ambition of acquiring a home in 2025.
The other half is unevenly split between urban and rural settings; with urban housing at 26.75% and rural housing at 17.25%, showing people’s preference for spacious living, with access to city centers.
63.92% of people believe that buying homes will be harder
The rising interest rates and economic conditions are making people believe that it will be tougher to buy homes.
On the other hand, the rest of the respondents think:
- There will be little to no impact on buying ability – 31.33%
- Homes will be easier to buy due to the market changes – 4.75%
33.67% of people see the housing market worsening in 2025
33.67% of people are worried about the housing market’s declining condition in 2025.
While there are people worried about the market’s condition, a total of 67.67% of people see the market in a positive light, with it being spread as 26.33% believe the market is improving and 40% believe the market has stabilized.
61.5% of people believe institutional landlords will affect their ability to buy a home
61.5% of respondents believe institutional landlords will affect their ability to purchase homes.
This concern reflects the growing presence of corporate buyers in the residential market and their potential impact on housing affordability, as only 38.5% of people believe it will not affect them.
67.42% of people believe modular homes will become mainstream in 5 years
Surprisingly, 67.42% of respondents believe modular and tiny homes will become mainstream within the next five years, indicating a growing acceptance of alternative housing solutions.
With only 32.58% of people not believing in the rise of modular or small homes, it indicates that affordability might be the cause behind this acceptance.
62.67% of people believe urban developments in 2025 will create affordable housing
62.67% of respondents believe new urban developments will create more affordable housing options in 2025, showing optimism about potential solutions to the housing affordability crisis.
This statistic seems a bit surprising as 56% of people previously stated their intention of choosing suburban areas for homes in 2025. However, only 37.33% of people believe urban developments will not create affordable housing options in 2025.
Implications for the Real Estate Industry
The survey revealed key insights into the real estate market and the mindset of potential homeowners in 2025. A significant 72.58% of respondents are willing to take on longer mortgage terms to afford homes more easily, highlighting the growing concern over high property prices and rising mortgage rates.
Interestingly, 80.42% of participants prefer affordable homes, even if they come with long-term renovation costs, reflecting a shift toward cost-conscious decision-making. Lifestyle changes are a major driver for home purchases, with many anticipating these factors to shape housing demand in 2025.
Despite expectations that urban housing developments could lower prices, over half of respondents lean toward suburban housing. However, 63.92% believe buying a home in 2025 will be more challenging due to rising interest rates and economic uncertainty, underscoring the challenges ahead for potential buyers.
Looking Ahead
The findings of this survey highlight important components leading into a new year, and trying to gain important insights into these topics for both the general population and real estate professionals.
