With the new year around the corner, Zillow Group ( Z ) chief economist Skylar Olsen joins Brad Smith on Wealth to talk about her expectations for the housing market in 2025.
Olsen says that, looking to 2025, Zillow is "thinking about the affordability challenge, but also thinking about the strength and the economy." She explains, "Put two of those things together, and you've got a lot of buyers in make-it-work mode," meaning buyers are "still trying to take advantage of more affordable" opportunities like buying a home outside of major cities.
"We're thinking about the rental market, which will be more important next year because of the continued barriers to the for sale side," the economist says, since there are "generations of people who are going to be renting for longer."
As mortgage rates are expected to stay higher for longer , "Zillow does expect probably fewer new listings from existing owners than we did just a couple months ago moving into that next year. That said, we still forecast a steady improvement."
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This post was written by Naomi Buchanan.