Factors Shaking Up The Real Estate Market In 2025
There’s been plenty of shock headlines for the global economy this year. How will all these factors play out for your personal finances, and investors across the US?
Tariffs & Inflation Fears
Double- and triple-digit trade tariff threats have been grabbing a lot of media space. Many business owners have reported they are fearful about inflation, supply chains, and staying in business if inflation rages.
Consumers seem less concerned, and don’t seem to have been hit in their daily consumer spending, yet.
We could find this story has been a lot more hype and bark than bite. Though it is something to keep an eye on. It could certainly pinch lower income earners if big consumer price hikes become a reality.
AI
AI is eating more jobs and has drawn a lot of attention and investment. Business owners are still scrambling to implement various forms of advertised artificial intelligence to stay lean and competitive.
Yet, go out and even survey younger generations about AI, and you’ll find they are not big fans either.
It may be here to stay. Though it may cause just as much negative disruption in the economy as it promises to create efficiency.
The big question is how this may impact the stock market, shifts in private investment, and jobs.
A Surge In Global Investment In The US
Between big new real estate investment deals and Gold Card Visas, it appears likely that we’ll see another substantial surge of global capital flowing into the US this year. That’s great for fueling the property market and values.
Mortgage Giants Itching To Lend
Mortgage giants seem hungry to get lending. Including Fannie Mae and Freddie Mac. Much of their money and backing could go into new multifamily housing projects.
Deep Funding Cuts
Funding and government staffing cuts have been deep. Some of those impacts are still working their way through the pipeline.
This includes government agencies and those they flow money to cutting off benefits like housing vouchers. This could impact landlords at the lower end of the market. Which may create more inventory for investors.
Summary
2025 has brought a rollercoaster of emotions and headlines for the global economy. Still optimism is strong. Most factors point to a strong economy and US real estate market over the next 18 months. That may favor middle to upper-scale housing investments.
