Top Real Estate Executives’ Views on the 2025 Market – Insights from Chicago Professionals
The real estate market in 2024 had its ups and downs, but many are optimistic about what 2025 has in store. With signs pointing towards improvement, industry experts are hopeful for a thriving residential real estate market this year.
One key factor for a successful real estate market in 2025 is inventory. Currently, the U.S. is facing a shortage of about 4 million homes, leading to high demand and increased prices. This scarcity is impacting first-time buyers, pushing them towards renting instead of buying. Builders are hopeful that builder confidence will translate into more homes being built, especially in the entry-level category where demand is highest.
On the policy side, there are discussions about opening up federal land for housing construction and reducing barriers to affordable housing. These steps could help alleviate the housing shortage, but it will take time to see significant changes.
Another crucial aspect of a strong real estate environment is interest rates. The Federal Reserve Board is considering cutting interest rates in 2025, potentially lowering mortgage rates. This drop could make homeownership more accessible and increase buyer activity, especially among first-time buyers.
Real estate experts like Kamini Rangappan Lane, Amy Lessinger, Mike Miedler, and Robert Reffkin are optimistic about the future of the real estate market. They emphasize the importance of increasing inventory and stabilizing interest rates to create a more favorable lending environment and boost demand in the market. With positive trends and an optimistic outlook, 2025 could be a promising year for the real estate industry.
