Survey Shows: 72.58% of Americans Would Increase Mortgages To Buy Houses in 2025

A new survey conducted by REsimpli using Pollfish reveals that 72.58% of Americans would increase their mortgage terms to be able to finance a home purchase in 2025.

This study gathered and analyzed data from 1,200 US citizens who are planning to either buy a new home or are looking to upgrade to a new home in 2025.

Key Takeaways From The Survey

• 72.58% of the respondents would opt to increase their mortgage terms to be able to afford a home in 2025
• 45.58% of people are mostly concerned about high property prices in 2025
• 80.42% of people would spend significantly on renovations for a property if they can get an affordable home
• 62.83% of people looking to buy a new home are seeking lifestyle changes
• 65.00% of people think cultural shifts will significantly impact the housing demand 
• 56.00% of people would opt for suburban housing
• 63.92% think economic factors and rising interest rates will impact home purchases in 2025
• 33.67% of people think that the housing market is worsening in 2025
• 61.5% of people believe that institutional landlords will affect people’s purchasing ability
• Modular/small homes becoming mainstream is what 67.42% of the respondents believe
• 62.67% of people believe urban housing will become more affordable in 2025

Why We Conducted This Study

The U.S. housing market continues to face unprecedented challenges, from rising interest rates to shifting demographic trends. 

This research aims to understand how these factors, combined with emerging trends like cultural shifts will shape housing demand in 2025. 

Key Findings Reveal Shifting Market Dynamics

72.58% of people would extend mortgage terms to buy homes in 2025 

72.58% of people would extend their mortgage term to lower their monthly payments, easing their transition into homeownership.

Despite 25.50% of probable home buyers being mostly concerned about the rising mortgage rates, only 27.42% of people would not extend their mortgage terms.

45.58% of people are concerned about high property prices in 2025 

High property prices remain the biggest concern for 45.58% of potential buyers coming into 2025.

The remaining people are mostly concerned about rising mortgage rates (25.50%), property taxes and maintenance costs (17.42%), and down payment requirements (11.50%).

80.42% of people would buy an affordable home despite renovation costs 

An overwhelming 80% of respondents would consider purchasing a home requiring significant renovation if it means better affordability. 

This openness to fixer-uppers suggests buyers are unable to find affordable homes on the market, as only 19.58% of people would choose otherwise.

62.83% of people are looking to buy homes for a lifestyle change 

The survey reveals that lifestyle changes are the primary motivation for 62.83% of potential homebuyers. 

This significantly outweighs the other factors such as investment opportunities at 18.58%, job relocation at 7.50%, and remote work flexibility at 11.08%. This trend aligns with recent market analyses suggesting a fundamental shift in how Americans approach housing decisions.

65% of people believe cultural shifts will drive housing demand in 2025 

A significant 65% of respondents believe cultural shifts, particularly remote work and lifestyle changes, will be the driving force of housing demand in 2025. 

The post-pandemic period has seen a significant amount of companies and people shifting to remote work. However, 35% of people do not believe cultural shifts will create a significant change in housing demand.

Urban areas lose interest as 56% would opt for suburban housing  

56% of respondents prefer suburban locations in their ambition of acquiring a home in 2025. 

The other half is unevenly split between urban and rural settings; with urban housing at 26.75% and rural housing at 17.25%, showing people’s preference for spacious living, with access to city centers. 

63.92% of people believe that buying homes will be harder 

The rising interest rates and economic conditions are making people believe that it will be tougher to buy homes.

On the other hand, the rest of the respondents think:

• There will be little to no impact on buying ability – 31.33%
• Homes will be easier to buy due to the market changes – 4.75%

33.67% of people see the housing market worsening in 2025 

33.67% of people are worried about the housing market’s declining condition in 2025.

While there are people worried about the market’s condition, a total of 67.67% of people see the market in a positive light, with it being spread as 26.33% believe the market is improving and 40% believe the market has stabilized.

61.5% of people believe institutional landlords will affect their ability to buy a home 

61.5% of respondents believe institutional landlords will affect their ability to purchase homes.

This concern reflects the growing presence of corporate buyers in the residential market and their potential impact on housing affordability, as only 38.5% of people believe it will not affect them.

67.42% of people believe modular homes will become mainstream in 5 years

Surprisingly, 67.42% of respondents believe modular and tiny homes will become mainstream within the next five years, indicating a growing acceptance of alternative housing solutions. 

With only 32.58% of people not believing in the rise of modular or small homes, it indicates that affordability might be the cause behind this acceptance.

62.67% of people believe urban developments in 2025 will create affordable housing 

62.67% of respondents believe new urban developments will create more affordable housing options in 2025, showing optimism about potential solutions to the housing affordability crisis.

This statistic seems a bit surprising as 56% of people previously stated their intention of choosing suburban areas for homes in 2025. However, only 37.33% of people believe urban developments will not create affordable housing options in 2025.

Implications for the Real Estate Industry

This study helped gain some key insights into the real estate world, and especially the minds of probable homeowners in 2025.

Based on this REsimpli survey, it is noticeable that a high percentage of people (72.58%) are willing to pay more on mortgages through longer mortgage terms so that they are able to afford homes with more ease.

People are also quite concerned with high property prices and rising mortgage rates. 80.42% of the survey respondents, staggeringly high, would opt for affordable homes despite the long-term renovation costs attached to them.

People are mostly looking to purchase a new home due to their lifestyle changes, and most believe these changes will play a significant role in housing demands for 2025.

Despite many believing that housing developments would reduce the prices of urban housing, more than half of the survey respondents would choose suburban housing. 

It is key to note that a significant portion of the respondents (63.92%) believe that purchasing homes will be harder in 2025 due to rising interest rates and/or economic conditions. 

Looking Ahead

This survey provides an in-depth look into a substantial amount of people and their insights and preferences leading into 2025. 

Information such as people’s personal thoughts on cultural shifts and their reasons for purchasing new homes can give real estate professionals an idea of how to proceed in this year. 

On top of that, this survey’s findings on people’s thoughts about modular/smaller homes can allow real estate professionals to focus on that area.

Despite people’s thoughts on the growing popularity of modular/smaller homes, a lot of respondents would prefer to purchase homes in suburban areas, meaning most people prefer a spacious residence with access to city life if needed.

This thought grows even stronger with a significant portion of the respondents believing that urban areas will have more affordable housing options in 2025. 

These thoughts can provide keen insight for real estate professionals and even the general population to make decisions moving forward. 

Methodology

This study surveyed 1,200 potential homebuyers using Pollfish across the United States, representing diverse demographics and regions. 

The sample includes both first-time buyers and those planning to upgrade their current living situations, providing a comprehensive view of market dynamics.

Survey Design & Collection

The survey was designed to eliminate any respondents who did not intend to buy homes in 2025 and only collected information from potential home-buyers, to gain a holistic understanding of the real estate market. 

Limitations

There are bound to be limitations in any survey collection, for this being the limited amount of 1,200 respondents, which might not be the overall standing of the US.

However, there is still credibility in gaining insights from this range of people, as it can provide an understanding to the general population and real estate professionals about where the real estate market is heading, and people’s opinions on various relevant topics.

Conclusion

The findings of this survey highlight important components leading into a new year, and trying to gain important insights into these topics for both the general population and real estate professionals.