As we progress further into 2025, there’s a lot to keep up with in regards to today’s real estate market. With interest rates down to 4.5%, the Federal Reserve poised to cut rates at least two more times this year, and several other key factors we’ll discuss below, the 2025 real estate market may still be on an upward trajectory.
In “Part 1: Updates & Trends: What’s New in the Real Estate Market for 2025,” we discussed three key trends shaping the latest local and national markets, including:
In “Part 1: Updates & Trends: What’s New in the Real Estate Market for 2025,” we discussed three key trends shaping the latest local and national markets, including:
- The rise of Gen Z homebuyers
- The growth in shared & flex space living arrangements
- The importance of staying updated on the latest real estate technology
In the second installment of the Updates & Trends series, we’ll take a deeper dive into the rise of urban infill developments, build-to-rent communities, and how baby boomers are beginning to refuel the housing supply.
1. The Rise of Urban Infill Projects
Urban infilling is the process of adding new developments to already developed neighborhoods to increase density through new housing and business development. These infill development strategies have played a critical role in community revitalization and affordability–providing a community with walkability, accessibility, and convenience outside of the major metropolises.
2025 real estate predictions place urban development projects at the center of city planning initiatives for three key reasons:
2025 real estate predictions place urban development projects at the center of city planning initiatives for three key reasons:
- Urban Decentralization: As remote work remains prevalent in 2025, buyers and renters still want the convenience of community and amenities outside of the costs and saturation of city-center living.
- Mixed-Use Developments: Urban infill cities provide the 2025 real estate market with innovative housing that combines residential, commercial, and entertainment spaces in one–attracting a mixed bag of buyers, renters, developers, and investors to one destination. While CIVIC doesn’t currently offer financing for mixed-use development, it still presents a lucrative opportunity for investors.
- Sustainability: Transforming old or abandoned buildings helps with sustainability. If you’re looking for a great urban infill example, look no further than the Francis B. Lowry Airfield in Denver, Colorado. After closing in 1994, the city of Denver needed to find a way to make the 1,900-acre site profitable. In 2009, the Lowry urban infill project was completed, transforming the airfield into a premier neighborhood with more than 25,000 people. Urban infill projects enable towns, cities, and states to renovate, redesign, and recycle already developed, outdated areas into sustainable, green living communities that are less reliant on cars.
With so many positives for cities, businesses, and residents, it’s no wonder urban infill projects are a growing trend in the 2025 real estate market, offering affordability and practicality to consumers and significant financial benefits for real estate investors.
In 2025, the three top areas with urban infill potential and planning include:
In 2025, the three top areas with urban infill potential and planning include:
- Dallas, Texas
- Las Vegas, Nevada
- Indianapolis, Indiana
2. The Growing Demand for Build-to-Rent (BTR) Communities
Affordability cannot be understated in the 2025 real estate market, which is why many industry experts predict the continued rise of BTR communities in 2025. BTR communities are developments with clusters of single-family homes designed exclusively for long-term renters.
With many Americans “priced-out” of home ownership, BTRs provide consumers with all the benefits of homeownership (private yard, garage, more square footage) without the burden of a mortgage.
Tract house developments not only benefit consumers but provide investors with a lower risk, less costly investment opportunity. Compared to luxury builds, tract home BTR communities offer:
With many Americans “priced-out” of home ownership, BTRs provide consumers with all the benefits of homeownership (private yard, garage, more square footage) without the burden of a mortgage.
Tract house developments not only benefit consumers but provide investors with a lower risk, less costly investment opportunity. Compared to luxury builds, tract home BTR communities offer:
- Investment opportunities with less upfront costs
- Less risk and lower vacancies with long-term tenants
- Scalability
These BTR communities will enable investors to build reliable income streams. Additionally, larger BTR communities often offer multi-unit purchases at a discount to investors, enabling investors to create more rental income streams for a fraction of the cost. These communities offer an opportunity to build consistent, reliable income while growing long-term appreciation in a single-family investment.
3. Baby Boomers Revitalizing the Housing Supply Chain
In part 1 of this series on the 2025 housing market, we discussed the dawning of a new target consumer–Gen Zers. In part 2, we’ll look at a different phenomenon within the market–the downsizing or transitioning of Baby Boomers.
With a wave of Baby Boomers either moving into retirement homes or looking for senior-focused development communities, expect to see more listings as the movement reduces the burden on the US housing supply shortage.
Moreover, the migration of Baby Boomers creates an uptick in demand for:
With a wave of Baby Boomers either moving into retirement homes or looking for senior-focused development communities, expect to see more listings as the movement reduces the burden on the US housing supply shortage.
Moreover, the migration of Baby Boomers creates an uptick in demand for:
- Age-Friendly Housing: Ranch-style properties with single-floor layouts, accessibility features, and low-maintenance living.
- Senior-Focused Communities: Like urban infills, and BTR communities, cities, developers, and investors are actively planning and investing in elder communities with assisted living facilities, co-housing arrangements, and adult activities and amenities.
In the end, we may see a significant dip in home prices in the 2025 real estate market and beyond. With more and more Baby Boomers moving into retirement and assisted-living age brackets and selling their long-time property, many expect an increase in housing availability. These two movements will hopefully spark a downturn in the exceedingly high market prices in the 2025 housing market.
The 2025 Real Estate Market: Finding Success
As we move deeper into 2025, keeping up with the evolving shifts in real estate will be pivotal to investment success. By adapting to emerging market trends, like the rise of urban infill projects, BTR communities, and the migration of baby boomers, investors can stay ahead of the curve and outpace their competition.
However, in order to guarantee success in the real estate market in 2025, investors must always be prepared with fast and reliable financing. This is critical to investing success. CIVIC provides top-of-the-line lending options with flexible terms and fast approval times, to help investors capitalize on the best investment opportunities.
With the latest in real estate innovation available to us, our team of industry experts can tailor the ideal loan program for your unique investment needs. We provide:
However, in order to guarantee success in the real estate market in 2025, investors must always be prepared with fast and reliable financing. This is critical to investing success. CIVIC provides top-of-the-line lending options with flexible terms and fast approval times, to help investors capitalize on the best investment opportunities.
With the latest in real estate innovation available to us, our team of industry experts can tailor the ideal loan program for your unique investment needs. We provide:
- Fix and Flip Lending
- 1-4 Unit Bridge Loans
- Ground-Up Construction Funding
- Rental & Rental Portfolio Financing
If you’re looking to prosper in the real estate market in 2025, let our team of trusted professionals guide you to business growth and success. CLICK HERE to schedule a FREE consultation today.
