What Homebuyers are Looking for in Fall 2025

Homebuyers are looking for some relief that they didn’t get during the spring/summer homebuying season. With the new school year beginning, and many homes remaining unsold, maybe they’ll get the one thing they want most—affordability.

During the peak of homebuying season in July 2025, the National Association of REALTORS® reported that in June median existing (preowned) home prices reached a new record of $435,300, unsold inventory rose to 4.7 months’ supply, and the average 30-year fixed rate mortgage was 6.75% on July 17^th, down marginally from 6.77% the previous year. 

Explained NAR’s Chief Economist Lawrence Yun, "Multiple years of undersupply are driving the record high home price. Home construction continues to lag population growth. This is holding back first-time homebuyers from entering the market. More supply is needed to increase the share of first-time homebuyers in the coming years even though some markets appear to have a temporary oversupply at the moment."

Kiplinger.com reported that in March 2025, a homebuyer buying a typical median-priced home at $418,489 needed an annual household income of $116,986—a 49.5% increase since January 2020 when the required income was $78,000.

In 2024, the percentage of first-time homebuyers dropped to an all-time low of 24%. By July, that number had improved to 30%, but still short of the 38%-40% needed to stimulate the move-up market, as it averaged between 2000 and 2020. Among the reasons for the improvement were lower home prices in some parts of the country and homebuyers’ willingness to move to less expensive exurbs, to purchase smaller homes, and to use federal, state and personal down-payment assistance programs. Some are asking sellers to pay all closing costs, which reduces the upfront monies necessary to close escrow. It also tracks that the median age of a first-time homebuyer is 38, up from age 28 in 1991.

Even if they can afford to buy a home, many first-time homebuyers aren’t able to save enough to make a substantial down-payment and rely heavily on subsidies such as grants, gifts from friends and relatives, down-payment loans, government programs, and down-payment assistance, as highlighted by Bankrate. The money-managing site also suggests such measures as “stacking down-payment assistance” from multiple sources. Buyers can expect to meet certain qualifications, such as providing a preapproval letter from a lender, take a first-time homebuyer class, adhering to a price range ceiling, and repaying their down-payment loan and perhaps a share of the equity that’s been built if the buyer sells the home before 30 years. Experts also recommend using a mortgage lender who is experienced with assistance programs, from federal sources to state and local housing finance agencies, to city incentives.

Because of the tremendous costs to get into a home of their own, first-time homebuyers want a turn-key transaction, where the home is already updated with a “modern kitchen, updated bathrooms, and fresh finishes”, meaning the condition of the home is of secondary importance to affordability. They don’t want to worry about the expense of making repairs and improvements, as well as going through the hassle, inconvenience, and unwanted and typically expensive surprises that they see occurring on home improvement shows. Sellers who’ve made their homes move-in ready will receive the best responses from the market.

First-time homebuyers are looking for energy-efficient upgrades that save money and benefit the environment. Water conservation is also a priority in many areas, making xeriscaping (low-water landscaping) more desirable than traditional grass that requires frequent watering and maintenance. Sellers can attract buyers by investing in high-efficiency windows, Energy Star–rated appliances, improved insulation, and other solutions that reduce utility costs and upkeep.

Another growing trend is multi-generational living. Homes shared with extended family can offer financial advantages—older family members may contribute equity from previous homes, while households can share caregiving responsibilities for children or aging relatives. According to NAR, 17% of homes purchased in 2024 were multi-generational, an all-time high, highlighting how this arrangement is increasingly popular and practical.

Bedrooms, Garages, and Outdoor Space

Over half of respondents in a survey of respective homebuyers (53.2%) said the number of bedrooms is very important—whether to accommodate more residents, prepare for a growing family, or host additional family members. Other common priorities include a garage, a primary suite with an en suite bathroom, a front porch, and a spacious yard for kids and pets.

Luxury and Design Trends

For buyers with more budget flexibility, wish lists trend toward luxurious and design-focused features. Houzz’s summer 2025 trends highlight color drenching—monochromatic schemes for walls, trim, and furniture, with variations such as analogous colors like blues, greens, and yellows. Natural, light-colored wood floors and cabinetry, paired with stone, linen, and cotton, remain popular for their calming, earthy feel.

Vintage and Personal Touches

Vintage interiors are making a comeback as a stylish and practical alternative to high-priced new furnishings. Upcycled or inherited pieces like china cabinets, hutches, and antiques add personality and spark conversation—allowing homeowners to share stories about the items. Metal accents in copper and brass complement these spaces beautifully.

Entertainment and “Fun Zones”

Homebuyers are increasingly seeking spaces for entertaining and leisure, from built-in beverage bars—coffee, wine, whiskey, or smoothie bars—to game rooms for poker, billiards, or Lego castles. Outdoors, when space and budget allow, buyers favor kitchens, pools, pickleball courts, and bocce courts, ensuring fun extends beyond the walls of the home.

Tailored for Every Generation

Different generations have different needs. Many buyers prioritize easy commutes and neighborhood amenities like shopping, services, and recreation. Older buyers want to age in place. Yet across all demographics, homebuyers share one key goal with sellers: finding a home they love while ensuring it’s a smart investment for the future.