8 Trends to Watch for in the Real Estate Market in 2025

As we enter 2025 and look into the new year, it’s important to recognize that the real estate market is expected to see several key shifts and trends throughout the year. These changes will impact real estate agents, buyers, sellers, and investors, as well as the types of homes and features that are in demand.
Whether you’re an agent or are planning to buy or sell, it’s smart to stay informed about these upcoming trends. Here are eight trends we’ll likely see in the real estate market in 2025.
1. More Sellers Will Enter the Market, Housing Supply Will Continue Increase
In 2025, even though some homeowners feel locked in because of their low interest rate, people have to sell for different reasons. For example, with all the changes in the condo market, the number of available condos has surged dramatically. According to Florida Realtors in December 2024, in Broward County, there was nearly 10 months of inventory (see graphic below). In other words, if condos continue to sell at the same rate, there are enough condos currently on the market for 10 months worth of sales. This coupled with high interest rates and slower home sales will likely result in more homes for sale in 2025.

If you are a buyer, the more homes there are for sale, the more choices and the more leverage you have. If you are a seller, you have to be more conservative in your pricing and more flexible when negotiating. It doesn’t mean you will get a bad deal, it just means you have to adjust your expectations to the market’s current reality, that is, if you really want to sell.
2. Buyers Will Remain Scarce
High interest rates have led to less buying power, putting many buyers out of the home buying game for the moment. With interest rates now teetering in the high 6s and with little chance of them coming down for at least the next year, buyers will remain scarce. This will drive prices down. How much they will go down is anybody’s guess. It all depends on how long interest rates hold in the high 6s. Over time lower prices could dilute the effect of the high interest rates and bring more buyers back to the market. How long that will take is unclear, only time will tell.
3. Foreclosures In Florida May Continue Rise
There are a number of factors that lead to foreclosure. In Florida, those factors have led to one out of every 247 units in the Tri-County (Miami, Broward & Palm Beach) going into foreclosure. That is a 4.14% increase according to an article in the South Florida Business Journal. If the trend continues, expect foreclosures in Florida to continue to rise.
If you or anyone you know is facing foreclosure they can reach out to me for help understanding the process. It is scary to be in foreclosure. I know because I was there during the Great Recession of 2008. However, if you know what to expect and what can be done, it is a lot less scary and not the end of the world.
4. Buyers Will Have an Increased Demand for Sustainable Homes
Sustainability is more than just a trendy buzzword—it’s becoming a top priority for homebuyers in Florida and across the nation! Many Floridians care deeply about protecting the state’s natural beauty, shorelines, and ecosystems, so they’re opting for green and sustainable living solutions.
In 2025, expect a growing demand for energy-efficient homes that minimize environmental impact. Features like solar panels, energy-efficient appliances, and advanced insulation will continue to appeal to eco-conscious buyers.
Builders are also incorporating sustainable materials such as recycled wood, bamboo, and non-toxic paints into their projects. Tax incentives for green construction and energy efficiency upgrades are further fueling this trend.
As more people become aware of the benefits of sustainable living—both for the planet and for their wallets—demand for these types of homes will continue to increase.
5. Smart-Home Integration Becomes the Standard
Smart devices play a key role in many aspects of life today, and homes are no exception. Smart home technology is no longer a luxury—it’s becoming a standard feature in modern homes. Buyers in 2025 will look for properties equipped with devices like smart thermostats, security cameras, smart locks, and voice-controlled systems.
This real estate trend goes beyond convenience. A well-equipped smart home can help lower utility bills by optimizing heating, cooling, and lighting, while also providing a greater sense of safety with real-time monitoring. Surveys show that 60% of smart home device owners say they feel safer, and 78% of insurance agents recommend that homeowners integrate smart home products into their lives.
Smart homes offer improved energy efficiency, enhanced security, and greater resale value, making them a worthwhile investment for buyers and sellers alike.
6. Urban Suburbs Will Continue to Grow
The concept of “urban suburbs” will continue to grow. These are areas outside city centers that offer urban amenities. They are more walkable, have public transportation, and foster vibrant communities. These areas offer residents a balance between the fast-paced city life and the space and affordability of the suburbs.
In 2025, urban suburbs will attract younger buyers and families seeking affordable homes. This gives them the space without giving up the convenience of living in the city. We will see developers will increasingly invest in these neighborhoods. They will build mixed-use communities with access to parks, shopping, and restaurants, further boosting their appeal.
We are already seeing this trend in South Florida. Downtown Fort Lauderdale, Oakland Park, Pompano Beach and other cities are building urban suburbs. A prime example of this trend is the Sky Building in Oakland Park.
The Sky Building is a mixed use project. It has two 5 story buildings, connected by a skybridge. One of the buildings has 136 residential units. The other has parking with the top floors being the City of Oakland Park’s new City Hall. The living quarters include studios, and 1 and 2 bedroom apartments. 17 of of these are “live/work” units. 15,000 square feet are dedicated to commercial space. The completion of the Sky Building is part of a long term plan to create a more walkable city center. The Sky Building is anticipated to open in early 2025.
See homes for sale in Oakland Park, Florida
7. Luxury Real Estate Will Continue Attracting Investors
The luxury real estate market is expected to remain strong in 2025. Wealthy buyers and investors will continue to purchase high-end properties. Luxury homes, particularly in sought-after locations like Miami, Fort Lauderdale, and Palm Beach, will be in steady demand. Both domestic and international buyers will be behind this demand.
Broward, also known as Greater Fort Lauderdale, and Palm Beach counties are quickly becoming alternatives to Miami as a luxury destination. Both destinations have everything that Miami has to offer but less population density and lower prices for the same views of the Atlantic Ocean. Pompano Beach, in Greater Fort Lauderdale, has seen a surge of luxury buildings being built on the beach. Those buildings include Casamar Residences, Salato, Ocean 580, The Ritz-Carlton Pompano Beach, Waldorf Astoria Residences.
See all properties for sale in Pompano Beach
8. You’ll See More Technology-Driven Real Estate Transactions
Technology continues to transform the real estate industry, and in 2025 we expect to see even more innovation.
One of the most useful technological advancements in real estate is the use of virtual reality (VR). Virtual reality allows potential buyers to take immersive 3D tours of properties, helping them get a true sense of the space, layout, and flow of the home. With just a VR headset or through their smartphones, buyers can explore multiple properties in a matter of hours, saving time and travel expenses.
Artificial intelligence (AI) is another game-changer in the real estate industry. AI-powered algorithms can analyze trends, compare property data, and consider buyer preferences in order to recommend personalized properties that best fit the buyer’s budget and needs, saving buyers valuable time.
On the seller’s side, AI tools can help determine the optimal listing price by analyzing real-time market data, ensuring that properties are priced competitively and accurately. AI can also be used for administrative tasks like paperwork, data organization, and scheduling, automating much of the behind-the-scenes work traditionally handled by agents.
There you have it! 8 real estate trends to look out for in 2025. If I missed anything, be sure to let me know, so I can include it in a future publication.
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