Some prefer renting, others prefer owning. Either way, the housing market is always a hot topic when it comes to the conversation of “economic demand”. The USA, along with most of the world, has been going through some recovery time since the COVID-19 pandemic, resulting in sluggish (but steadily improving) economic growth.
The prospects of 2025 are positive because this decline in economic growth is coming to an end, and there are some good indicators pointing to a positive horizon. Let’s see what these are and why the housing market is generally expected to grow next year.
The Covid-19 lockdown period was a horrible time for many, but there was one good thing that came out of it. There’s been a noticeable decrease in city apartment renting and an increase in suburban home demand. The reason? Companies have realized that their employees working from home creates financial benefits for their bottom line. In fact, working remotely has become the new normal for many corporations that used to require their workers to be on the premises.
A good example of this is New Jersey. Offices have closed down, and blue-collar workers have decided to live away from the city in suburban areas. The residents who choose to stay are increasingly taking out renters insurance in NJ to protect their belongings, due to the high crime rate in many of the city’s surrounding areas. But the demand for insurance is also high in suburban areas, since the growing affluence of residents calls for physical and financial security.
It goes without saying that population growth from those conceived in the late nineties and early 2000s has had a significant impact on our economy. Generation Z is now entering the job market, with many of them finding online means of employment working from home.
As these millions of individuals begin to search for places to live, development will try to keep up with the demand. This demand varies from state to state, but it is fairly consistent across the entire country. 2025 will see millions of young adults moving out of their parents’ homes and starting their lives.
As mentioned before, the economy is now nearing the end of its recovery phase. This means that we’re about to experience an inertia of economic growth from all of the hard work (and sparing spending) we’ve been doing over the past two years. As more people begin to earn more, a large portion of them will also start looking to purchase their own properties as a means of investment.
The government is actively involved in incentivizing first-time home buyers. Programs and campaigns are being launched by the government and by the White House itself, offering tax credits to those who purchase homes. Whether or not all of these programs will still be in effect next year remains to be seen, but incentives like these are always a good reason to buy rather than rent.
For various reasons, US citizens are relocating at a rate not seen in a long time. This could have a lot to do with the economic shift post-Covid19. As more and more people begin to work from home, their options are starting to open up on where they can live. Some are moving closer to their families, while others are simply looking for a fresh start.
As these individuals flock to various states and towns, some of those areas are realizing that their demand for housing has increased without warning. Development is underway to accommodate new residents in desirable locations, and this includes houses as well as apartments and rentals.
There also seems to be more to do everywhere you go. Recreational activities are expanding as tourism picks up and families spend more time together. New parks are opening up, concerts are being planned, and shopping malls are popping up to meet the increasing demand for a good economy.
While these may simply be projections, there are enough positive ones to expect growth in the housing market. Housing is one of those factors that tie in with every other economic progression because everyone needs a place to stay! As job opportunities begin to open up more prolifically, people are sure to begin investing in property ownership once again.
For those who don’t, rentals are still likely to soar in 2025. Here’s hoping! More home purchases and a higher demand for rentals can only mean good things for the US economy. The question is, how many people will capitalize on this and get in on the ground floor? Investing in property seems to be a good bet for 2025, so if you’re looking to expand your portfolio, this might be a good place to start.
