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Global Properties

It’s impossible to predict the future with absolute certainty, but real estate experts agree on one thing: 2025 will bring both new opportunities and serious challenges for investors, landlords, and property managers. Here are the three key trends that will shape the U.S. housing market in the coming year.

1. Climate risks will influence investment strategies

The growing number of natural disasters and extreme weather events is already reshaping the real estate market. Investors are increasingly avoiding high-risk areas, as hurricanes on the East Coast and wildfires in the West become more destructive. However, this trend also creates opportunities for risk-tolerant investors. Local price drops in vulnerable areas could open new entry points for buyers willing to take on the challenges associated with such investments.

2. Build-to-rent model will gain strength

The concept of building homes specifically for rental purposes — known as Build-to-Rent — is becoming increasingly popular. This format is gaining traction amid economic uncertainty and housing affordability challenges. In 2025, demand for Build-to-Rent properties is expected to keep growing, as it offers high-quality rental housing while lowering barriers for tenants.

3. Alternative housing models will unlock new investment opportunities

The housing market is evolving, and investors are exploring innovative ways to make housing more affordable and flexible:

  • Converting commercial properties into residential spaces — more developers are repurposing old factories, hotels, and schools into apartment buildings.
  • Co-living — shared living arrangements are becoming a profitable solution for investors, offering high returns and minimal vacancies. Property owners rent out individual rooms, similar to multifamily housing.
  • Fractional ownership — collective investment in multifamily properties is gaining popularity, allowing multiple investors to purchase shares in a property. These models make it easier to enter the market, even for smaller investors.

Despite the challenges, 2025 could present exciting new opportunities for those ready to adapt and embrace innovative approaches in real estate.

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