Are you thinking about buying a home in 2025? You're not alone. We surveyed 1,000 Americans and asked when they hope to buy, what's holding them back, and what they're willing to give up to make it happen. From rising prices to long-distance moves, the results reveal how affordability is shaping home-buying decisions and which cities are catching buyers' eyes
Key Takeaways
- 12% of Americans plan to buy a home in 2025, and 58% will be first-time buyers.
- 54% say home prices are too high, and 44% say mortgage rates are.
- More than half (55%) would move out of their current city just to afford a home.
- Nearly 1 in 5 would even consider buying abroad to make it work.
- 23% would consider co-buying a home with family or friends.
- New York, Seattle, and Denver top the list of cities where Americans would most like to buy a home in 2025.
Home Buying Intentions
We asked Americans about their home-buying plans for the near future. The responses reveal when people expect to enter the market and who will be purchasing a home for the first time.
For many, homeownership remains a goal, just not an immediate one. Only 12% of Americans said they plan to buy a home in 2025, but 57% said they intend to buy after this year. Gen Z was the most likely to opt out entirely, with 21% saying they don't plan to buy a home.
Among those planning to buy in 2025, 58% will be purchasing their first home. This points to a wave of new buyers entering the market.
Homeownership Motivations, Barriers, and Sacrifices
Many potential buyers find it challenging to afford a home. We asked what's holding them back, what compromises they would make, and what motivates them to keep pursuing homeownership.
The biggest hurdle for homebuyers is cost. Over half (54%) said home prices in their area are too high, and 44% pointed to high mortgage rates. Another 37% said they just don't feel financially prepared to take on homeownership.
Still, many are willing to make major changes to afford a home. More than half (55%) would move to a different city, and 43% would relocate to another state. Nearly a quarter (23%) were open to co-buying a home with family or friends to become homeowners.
Others are adjusting their expectations. Around 2 in 5 (42%) said they would be willing to settle for a smaller or less desirable home, while about 1 in 3 would buy an older home that needs repair or renovation.
2025 Home Preferences: From Tiny Homes to Big Cities
Preferences around what and where people want to buy are shifting in response to affordability concerns. We looked at the types of homes buyers are considering and which cities are at the top of their wish lists.
When asked what type of home they want in 2025, the majority of buyers (55%) said they're looking for a smaller, more affordable single-family house. Condos and townhomes were also in demand, with 30% considering them. A more unconventional option, tiny homes, appealed to 12% of buyers.
Some (18%) were even considering buying a home abroad in order to make ownership more attainable. Despite affordability concerns, several high-cost cities remain popular among aspiring buyers. The top five most desired cities to purchase a home were New York, Seattle, Denver, Los Angeles, and San Diego.
What American Homebuyers Are Telling Us
Homeownership remains a priority for many Americans, but the path to getting there is changing. High prices and interest rates are prompting buyers to make tough choices, from relocating to rethinking what kind of home they can afford. The trends show a generation of buyers willing to adapt and determined to make ownership work on their own terms.
Methodology
We surveyed 1,000 Americans to explore home-buying sentiment in 2025. Of the respondents, 19% were Gen Z, 55% were millennials, 20% were Gen X, and 5% were baby boomers. Respondents who indicated they were not planning to buy a home (23%) were not included.
About JW Surety Bonds
JW Surety Bonds is a trusted provider of surety bond solutions for professionals in real estate, construction, and finance. We help mortgage brokers, real estate agents, and contractors meet licensing requirements through bonds that protect consumers and support industry trust. As home buying trends evolve in 2025, we're here to support the professionals helping Americans achieve homeownership.
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