In an era when home prices are shooting up and mortgage rates are only moderating, who are the buyers trying to fulfil their housing-market dreams? That is a question Zillow’s new report on Consumer Housing Trends in 2025 seeks to unravel, based on six surveys conducted nationwide with input from 57,600 buyers and prospective buyers.
The median age of a buyer in 2025 is 42, and the average is 44. One in five is in their twenties, and 23% are baby boomers aged 60 or older. Some 35% are millennials (ages 31-45), and 23% are Gen X (ages 46-60).
The 66% of the buyer pool represented by Caucasians is higher than their 60% overall share of the U.S. population. Two smaller ethnic groups also have a higher proportion of homebuyers than their overall populations would suggest. Hispanics comprise 14% of home buyers and 12% of the U.S. adult population, and the Asian/Pacific Islanders’ 8% share of homebuyers is greater than their 6% share of the population. Blacks, however, are underrepresented, comprising 9% of buyers but 18% of the population.
The South, which is home to 39% of U.S. adults, offers 55% of the country’s for-sale housing inventory and attracted 40% of its homebuyers. The Midwest, with 15% of all inventory, attracted 26% of buyers; the West, with 20% of the housing supply, drew 23%; and the Northeast, with only 10%, pulled in just 12%.
The survey also revealed that the majority of homebuyers had high incomes. Only 9% had incomes below $25,000, 13% between $25,000 and $49,999, and 14% between $50,000 and $74,999, while 14% had incomes between $75,000 and $99,999. The largest percentage, 33%, had incomes between $75,000 and $199,999, followed by 17% in the $200,000+ group.
By educational level, 27% of buyers held a high school diploma or less, 24% had some college experience, 31% had a four-year college degree and 18% had postgraduate degrees.
Married or partnered people accounted for 60% of buyers, followed by the never married (24%) and the divorced or separated (16%). Households with children under 18 represented 36% of buyers, but 62% owned plants.
The survey also revealed a trend toward cobuying homes, sharing ownership with a spouse, friend or relative. Unsurprisingly, almost half (45%) bought with a spouse or partner, 11% with a relative and 10% with a friend.
Almost two-thirds of buyers insist on a home inspection before the deal is done. Other preconditions are getting financing (59%) and an appraisal (53%). The sale of a previous home is a condition for 21%. Only 22% demand a mortgage buydown. Moreover, this marks the first time insurance was on the list, with 53% considering it essential.
Disasters and supplemental insurance are on the minds of many homebuyers this year. More than half (56%) took out some form of supplemental disaster insurance for at least one type of disaster in addition to their homeowners’ policy.
Flood insurance was the most commonly purchased type, bought by 36% of home buyers, followed by tornado (23%) and hurricane (22%). First-time buyers were more likely to purchase supplemental insurance to cover all eventualities than repeat buyers, though 1/3 bought none, compared to 52% of repeat buyers.
There were some differences by state. Earthquake (55%) and landslide (18%) coverage were the priorities in California, hurricane (52%) and flood (39%) in Florida, flood (47%), earthquake (36%) and tornado (34%) in New York, as well as flood (47%), hurricane (29%) and tornado (27%) in Texas.
Given what is at stake in buying a home, it is not surprising that 60% of buyers reported the process, which in some cases took six months or more, was stressful, especially for younger buyers.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.