Key Insights into the Housing Market: 50 Real Estate Statistics for 2025

The U.S. housing market in 2025 is defined by both resilience and strain: affordability remains a challenge, demographics are reshaping demand, and technology continues to disrupt how homes are bought and sold. Among the most striking shifts is the rise of virtual staging, now used by more than half of real estate professionals. Polished, digital-first listings are no longer a novelty – they’re an expectation. While they can spark engagement and boost offers, they also raise new questions: When does enhancement cross into misrepresentation?

This guide distills 100 of the most important statistics and trends shaping real estate today, with practical insights on affordability, demographics, housing supply, and technology.

• Affordability: The national rent-to-income (RTI) ratio eased to 27.4% in Q4 2024, its lowest since pre-pandemic levels. Still, the New York metro remains the most rent-burdened market at 58.5%.
• Demographics: Baby Boomers dominate the selling market, making up 53% of sellers. By contrast, 43% of younger Millennials carry student loans (median $30,000), limiting their buying power.
• Income gaps: The median household income in 2023 was $80,610 (+4% YoY). Yet sharp disparities remain: White households averaged $84,630, while Black households earned $56,490.
• Housing supply & vacancy: Developers delivered nearly 290,000 multifamily units in 2024, raising the national vacancy rate to 6.1% – the highest since 2011.
• Technology & marketing: Listings with professional photography sold for $934 to $116,076 more and gained 1,200% more social shares; homes with 3D tours closed 31% faster.

By the end, you’ll know not only how to use virtual staging effectively, but how to do it in a way that keeps you compliant, credible, and one step ahead of potential disputes. Virtual staging is a powerful tool – but trust is the real selling point.

Key Statistics to Note

Here are some of the biggest, most important numbers from across the report:

• Affordability: The national rent-to-income (RTI) ratio eased to 27.4% in Q4 2024, the lowest since pre-pandemic levels. Still, the New York metro RTI remains extremely high at 58.5%, keeping it the most rent-burdened market.
• Demographics: Baby Boomers dominate the selling market, making up 53% of all sellers, while Millennials face steep barriers – 43% of younger Millennials carry student loans (median $30,000).
• Income: The median household income in 2023 was $80,610 (+4% YoY), but large disparities exist: White households averaged $84,630, while Black households earned $56,490.
• Housing Supply & Vacancy: Nearly 290,000 multifamily units were delivered in 2024, pushing national vacancy rates to 6.1% – the highest since 2011.
• Technology & Marketing: Listings with professional photography sell for $934 to $116,076 more and get 1,200% more social shares, while homes with 3D tours can sell 31% faster.

Section 1: Real Estate Statistics for 2024

Housing Affordability

• The National Association of Realtors’ Housing Affordability Index fell from 108.8 in 2022 to 94.4 by June 2025, showing that a typical family’s ability to buy a median-priced home has eroded.
• Mortgage payments have risen from 23% of income in 2022 to 26.5% by mid-2025, nearing the unaffordability threshold of 30%.
• Regionally, the West is the least affordable (36.2% of income, index 69.0), while the Midwest remains the most affordable (21.1% of income, index 118.7).
• Despite median family income growth, housing cost inflation has outpaced wage gains, keeping affordability under pressure.

Home Seller & Buyer Stats

• Seller tenure is long: The typical homeowner stays in their property about 10 years before selling, reflecting both financial and lifestyle considerations.
• Homes are modest in size: A “typical” home sold in 2024 was about 1,900 square feet, balancing space needs with affordability.
• First-time buyers are getting older: The average age for first-time buyers has risen to 38, up from 35 the year before, showing how affordability challenges are delaying entry into homeownership.
• Repeat buyers are even later in life: The average age for repeat buyers is now 61, up from 58, as Baby Boomers and older Gen Xers dominate the market.

Baby Boomers vs. Millennials in the Housing Market

Baby Boomers dominate as sellers: They make up the largest share of sellers at 53%, and typically hold onto their homes for about 16 years before moving. Their main reasons for selling are lifestyle-driven  –  especially the desire to downsize or move closer to family.

Millennials face financial and space pressures: As both buyers and sellers, Millennials’ housing choices are shaped by affordability challenges. Younger Millennials often sell because their homes are too small, while Older Millennials cite job relocation.

Student debt weighs heavily on Millennials:

• 43% of Younger Millennials carry student loans, with a median balance of $30,000.
• 29% of Older Millennials still have loans, with a higher median of $35,000.
  These burdens make saving for down payments and moving up the property ladder far more difficult compared to Boomers.

Together, these contrasts show how Baby Boomers control much of today’s housing supply, while Millennials struggle to overcome financial headwinds that delay or limit their homeownership opportunities.

 Home Characteristics, Locations, and Financing Challenges

The typical American home sold in 2024 was about 1,900 square feet with three bedrooms and two bathrooms, built around 1994. 

Size and features vary by generation: Older Boomers and Gen X lean toward larger homes of around 2,000 sq. ft., while Younger Millennials more often purchase smaller homes closer to 1,600 sq. ft..

Generational needs influence housing choices: Roughly one in four Older Boomers purchased senior-oriented housing, while 40% of Millennials said commuting costs were a top priority in deciding where to live.

Location preferences remain diverse: The majority of buyers chose the suburbs (41–49%), while 21–26% opted for small towns. 

Among younger buyers aged 26–34, 21% purchased in urban centers, and a small share  –  1–5%  –  favored resort or recreational areas, a trend more common among Boomers.

Detached single-family homes remain dominant, making up 63–81% of purchases, though 7–13% of Boomers purchased mobile or manufactured homes as an alternative.

Financing remains a hurdle for many buyers: While 74% financed their purchase, the way households overcame saving challenges varied. 

About one-third of Younger Millennials relied on financial help from family or friends for their down payment, while Older Boomers often delayed saving for a decade due to debt. Across age groups, the main barriers were high rents, credit card debt, and student loans, all of which slowed the path to ownership.

Buyer Identity: Who’s Purchasing Homes in 2025

Understanding the profile of today’s homebuyers means looking at their education, generational makeup, and how many are entering the market for the very first time. These demographic factors shape not just who buys homes, but also what kinds of homes they buy and how they navigate affordability challenges.

Education of Home Buyers

Education continues to be a powerful predictor of who can enter the housing market. Buyers with advanced degrees are overrepresented compared to the general population, reflecting the income advantages that higher education provides.

• Overall, 29% of buyers have a bachelor’s degree, 25% hold a master’s/MBA/law degree, and 7% have a doctoral degree.
• Younger buyers (18–25 and 26–34) are especially bachelor’s degree heavy (41% each), while advanced degrees rise with age: 27% of Boomers (70–78) hold a master’s/MBA/law degree.
• At the other end, just 1% of buyers have less than a high school diploma, across all age groups.

Generational Breakdown of Buyers

The generational composition of the market highlights how Baby Boomers remain dominant, while Millennials and Gen Xers represent the bulk of middle-aged buyers. Even Gen Z and the Silent Generation participate, though in smaller numbers.

• Gen Z (18–25) make up 3% of buyers, with a median age of 22.
• Younger Millennials (26–34) account for 12% of buyers, median age 31.
• Older Millennials (35–44) represent 17%, with a median age of 40.
• Gen X (45–59) contribute the second-largest share at 24%, median age 52.
• Younger Boomers (60–69) lead at 26% of buyers, median age 65.
• Older Boomers (70–78) follow with 16%, median age 73.
• Silent Generation (79–99) still account for 4% of buyers, with a median age of 81.

First-Time Buyers by Age Group

First-time buyers remain an essential part of the housing market, but they are heavily concentrated in younger age brackets. This underscores both the role of life stage and the unique financial hurdles that shape who can achieve homeownership earlier in life.

• Across all buyers, 24% are first-time homeowners.
• Millennials dominate first-time purchases: 71% of those aged 26–34 and 36% of those aged 35–44 are first-time buyers.
• By contrast, just 20% of Gen X (45–59), 9% of Younger Boomers (60–69), 4% of Older Boomers (70–78), and 5% of the Silent Generation (79–99) are buying their first home.

Section 3: Rental Market Statistics

The rental market in late 2024 and into 2025 reflects a cooling from pandemic-era highs but remains defined by affordability pressures, supply surges, and shifting economic dynamics. Together, these indicators show how renters are affected by both macroeconomic conditions and structural housing constraints.

National Indicators

At the national level, affordability is easing slightly as incomes rise faster than rents, but the burden remains high in many markets.

• The national rent-to-income (RTI) ratio fell to 27.4% in Q4 2024, marking the fifth consecutive decline and its lowest level since before the pandemic.
• Median household income rose 0.9% quarter-over-quarter, helping offset rising costs.
• Asking rents increased only 0.2% to $1,850, while year-over-year, income growth (+3.6%) outpaced rent growth (+0.7%).

Forecasts & Market Dynamics

Looking ahead, forecasts paint a mixed picture of modest growth in home values and sales, tempered by broader economic forces.

• Zillow projects home values will rise 0.9% in 2025, alongside 4.11 million expected home sales.
• This follows a historic slowdown: 2024 recorded the lowest home sales in 30 years.
• Mortgage rates remain elevated at 6.6%, keeping pressure on affordability.
• Meanwhile, the stock market set new records in 2024, underscoring the divergence between financial assets and housing accessibility.

Supply & Vacancy

Rising construction activity has shifted vacancy rates upward, easing some tightness in the rental market.

• In 2024, developers completed nearly 290,000 multifamily units, a record wave of new supply.
• Vacancy rates rose 10 basis points per quarter in the second half of 2024, reaching 6.1% by year’s end, the highest level since 2011.

Overall, the rental market is showing signs of stabilization: rent growth has slowed, incomes are catching up, and new supply is creating more breathing room. Still, affordability remains strained, and elevated mortgage rates keep many households locked in as renters rather than transitioning to ownership.

Section 4: Real Estate & Technology

Technology has become inseparable from the home-buying process, shaping how buyers search, evaluate, and even perceive properties. From online listings to professional photography, the digital layer now determines not only visibility but also the value and speed of sales.

Internet Use in the Home Search

The internet has fully replaced traditional first steps in the housing journey, with nearly all buyers starting online before contacting agents or visiting homes.

• By 2017, 95% of buyers were already online for their search, and by 2024, the number has effectively reached 100%.
• In 2024, 51% of buyers found their home online, compared to 29% through a real estate agent and smaller shares through friends (8%), yard signs (4%), or directly from sellers (4%).
• The internet has become not just a supplement but the primary gateway to homeownership.

Photos & Listing Quality

Visual presentation has emerged as the single most powerful factor in attracting buyers, driving engagement, offers, and sale prices.

• 85% of buyers say photos are the most critical part of a listing.
• Homes with professional photos consistently outperform:
  
  • Sell in 89 days vs. 123 days with amateur images.
  • Have an 84% higher chance of selling within the listing period.
  • Close for $934 to $116,076 more, often due to perceived value.
  • Attract 61% more views and 1,200% more social media shares.
  • Appear 33% larger and boost perceived value by 39%.
• Buyer behavior proves the point: people spend 60% of their time on images and only 20% on descriptions.

Digital tools – especially online listings and professional visuals – are no longer optional but foundational to real estate marketing. They not only shape buyer perception but directly impact market performance, from speed of sale to final price.

Virtual & 3D Tours: Promise vs. Reality

Virtual tours surged during the pandemic, but their role in 2025 is more complex. They’re no longer guaranteed to speed up sales or raise prices once strong photos and descriptions are in place, though they can still be valuable tools in the right contexts.

• Not a universal price booster: When controlling for listing quality, virtual tours have little to no effect on sale prices.
• Can lengthen time on market: Homes with virtual tours sometimes linger longer because sellers using them often set higher asking prices at the start.
• Help buyers filter options: Virtual tours are effective at screening out less desirable properties, making searches more efficient.
• Context matters: They add more value in neighborhoods where listings tend to be lower-quality or handled by smaller firms.
• Secondary to photos: High-quality photography and clear descriptions remain more critical than tours for most listings.

Virtual tours are best viewed as a strategic add-on – useful for certain markets and buyers, but not a substitute for professional photos and strong listing details.

Home Staging: Sellers’ Agent Perspective

• 21% of sellers’ agents stage every home before listing. Another 10% reserve staging for harder-to-sell properties. Either way, staging is a deliberate strategy, not an afterthought.
• The rooms staged most often? Living room (91%), primary bedroom (83%), and dining room (69%). In short: stage where people live, sleep, and gather.
• Compensation varies:
  
  • 26% said it depends on the situation.
  • 23% stage the home themselves.
  • 17% said the seller pays.
    The takeaway: there’s no single model, but someone always picks up the tab.
• Cost matters: the median spend on a staging service is $1,500, compared to $500 when agents do it themselves. Outsourcing costs more – but often delivers a

polished, professional result.

• 19% of sellers’ agents reported staging increased offers by 1–5% over unstaged comparables. Again, decoration translates to dollars.
• 30% of sellers’ agents noticed shorter time on market when staging was used. Even slight decreases mean faster deals and less carrying cost.
• Sellers’ agents said visuals drive value: photos (88%) were most important, followed by videos (47%) and traditional staging (43%). The modern buyer doesn’t just want to read about a home – they want to see it.

Home Staging: Buyers’ Agent Perspective

• 60% of buyers’ agents said staging has some effect – it nudges buyers, though not always. Another 26% said staging changes most buyers’ view of a home. In other words: more than 8 in 10 agents agree staging shifts perception.
• 83% of buyers’ agents reported that staging makes it easier for buyers to see the property as their future home. That’s the real magic – imagination translated into intent.
• When asked which rooms matter most, the living room came first (37%), followed by the primary bedroom (34%) and the kitchen (23%). Start with the spaces buyers linger on.
• On listings, buyers expect visual assets. 73% of agents said photos are critical, but they also value traditional staging (57%), videos (48%), and virtual tours (43%). The pattern is clear: more visuals, more interest.
• 17% of buyers’ agents said staging raises offers by 1–5% compared to similar unstaged homes. That’s not just decoration – it’s dollars.

Wrap Up

The U.S. housing market in 2025 stands at a crossroads – balancing progress on affordability and supply with persistent inequalities across generations, races, and regions. While Baby Boomers dominate as sellers, Millennials continue to face steep barriers to ownership, and renters remain squeezed despite record construction. At the same time, technology is reshaping the market at every level, from how buyers search to how sellers present homes.

The bottom line: affordability, demographics, and digital innovation will define the next chapter of real estate. Stakeholders who adapt to these shifts with transparency, creativity, and a focus on trust will be best positioned to thrive in an uncertain but opportunity-rich housing market.

Sources:

This report drew on several authoritative, industry-leading sources:

2025 NAR Home Buyers and Sellers Report – A Profile of Home Buyers and Sellers (buyer/seller demographics, internet use, behavior).

NATIONAL ASSOCIATION OF REALTORS: HOUSING AFFORDABILITY INDEX

Moody’s CRE Dataset – Affordability ratios, rent trends, vacancy rates, multifamily supply.

Zillow Research – Housing forecasts, sales projections, and commentary.

U.S. Census Bureau – American Community Survey (ACS), 2023 1-Year Estimates (income and demographics).

U.S. Census Bureau Vintage 2024 Estimates (population and migration trends).

2025 Profile of Home Staging National Association of REALTORS® Research Group

Are Virtual Tours Still Worth It in Real Estate? Evidence from 75,000 Home Sales