Real Estate Report 2025

Want to know what people think about the state of the housing market? Step right up and read all about it!

At the close of 2025, Ramsey Solutions conducted a nationally representative survey of 1,043 U.S. adults and an additional 489 buyers who purchased a home within the past 12 months (see full methodology below) to give insight into American behaviors and attitudes toward homeownership and the housing market.

As you might’ve guessed, most Americans aren’t too thrilled about high home prices and high mortgage rates. But that doesn’t mean people aren’t doing what they can to accomplish their buying or selling goals.

Whether you’re hoping to learn more about real estate, get the ball rolling on your own buying or selling plans, or grow your real estate business, this report will give you an idea of what to expect from buyers, sellers and homeowners in this housing market. Let’s dive in and explore the data.

Real Estate Trends at a Glance

• Stable homeownership: 58% of U.S. adults own a home.
• Speedy transactions: 53% of recent buyers completed their purchase in three months or less.
• Existing homes dominate: 78% of recent buyers purchased an existing home, while 21% bought a new build.
• Financing: 58% of recent buyers borrowed money to purchase a home, while 42% paid in cash.
• Paid-off homes: 52% of homeowners have a mortgage, while 47% own their homes outright.
• Down payments: The median down payment among recent buyers was 20%.
• Loan types: A 30-year fixed-rate conventional loan is the most common type of mortgage—but 15-year loans save far more in interest.
• Mortgage rates: Homeowners report being happy with rates under 5%.
• Market sentiments: More people feel neutral than positive or negative about this market.
• Market activity: 10% plan to buy and 6% plan to sell in the next year.
• Knowledge gap: A third of Americans don’t feel knowledgeable about the buying and selling process.
• Trusted agents: Trustworthiness is the top trait people look for in a real estate agent.

Download a PDF version of the report.

 

Here’s What to Expect When It Comes to Owning, Buying and Relocating

What percentage of Americans own homes vs. rent?

Nearly 6 in 10 adults own a home (58%), while a third rent (33%). Homeownership remains steady compared to previous years.

Baby boomers and the Silent Generation lead the way, with 83% owning their homes. Income also matters—80% of those earning $100,000 or more own a home.

How long does it take to buy a house?

Over half (53%) of recent home buyers completed their purchase in three months or less—from actively searching to closing.

What’s the most popular type of home?

Single-family homes continue to dominate—compared to the small percentage who purchased townhomes, condos, and mobile homes. Among recent buyers:

• 83% purchased a single-family home
• 78% bought an existing home
• 21% purchased new construction

Sidenote: Those last two stats are probably less about preference and more about the availability of existing homes compared to new builds.

How many people relocate when buying a home?

More than half of recent home buyers relocated in some way during their purchase.

• 36% moved to a different city within the same state
• 19% moved to a different state

If moving to a new area is part of your home-buying plans, make sure you check out our Cost of Living Calculator and get yourself fully prepared for the move with our Relocation Guide.

What to Know About Mortgages, Down Payments and Interest Rates

What percentage of Americans have a paid-off house?

• 47% of homeowners own their home outright—so don’t let anyone tell you it isn’t possible.
• 52% still have a mortgage.

It also makes sense that younger people—Gen Z/millennials (65%) and Gen X (61%)—are more likely to have a mortgage compared to baby boomers and the Silent Generation (33%).

Is mortgage preapproval common?

Among recent home buyers, 46% got preapproved for their most recent mortgage. Many sellers won’t take your offer seriously unless you have that preapproval in hand—especially when you’re competing with other buyers who already do.

How common are home inspections and moving services?

Most recent buyers (61%) had a home inspection done before finalizing their most recent purchase. Don’t skip this step—it’s essential for avoiding unexpected, costly repairs with your new home.

Saving for a house isn’t only about the down payment and closing costs. About 44% of recent buyers used moving services—and relocation costs like that can add up quickly. Be sure to budget for moving expenses.

What percentage of people buy their homes in cash?

Among recent buyers:

• 42% paid in cash
• 58% relied on at least one loan

This could be a signal that a financially stronger mix of buyers are making up a larger percentage of the current market. If you’re able to save up the cash, the best way to buy a home is still putting 100% down.

What’s the typical down payment amount on a house?

The median down payment on a house was 20% of the purchase price—with the typical home loan amount being $221,051. (Remember, median means half of all buyers paid less and half paid more.) That’s awesome news because any down payment that’s 20% or more allows buyers to skip private mortgage insurance (PMI).

If you’re a first-time home buyer, don’t buy a home if you can’t put down at least 5–10%. And make sure your mortgage payment (including principal, interest, taxes, insurance, HOA fees and PMI) is no more than 25% of your monthly take-home pay—otherwise, you could be house poor.

Listen, we want you to own a home—we just don’t want your home to own you. For help saving up a big down payment fast, check out our free Down Payment Guide.

How much do you typically pay in closing costs?

The median total for closing costs on a home purchase in the past year was $7,306. Don’t forget to plan for these costs, and don’t cheat by stealing from your down payment amount or emergency fund. You’ll need that money too!

What’s the average mortgage payment in the U.S. right now?

U.S. homeowners with a mortgage have a median monthly payment of $1,500—including principle, interest, taxes, insurance, PMI and HOA fees. And 47% say they’re making extra payments to pay their mortgages off early—at a median of $300 per month.

What’s the most common type of mortgage?

Of those who recently used a loan to pay for their home, most chose a 30-year fixed-rate conventional loan. It’s great that most are avoiding risky types of mortgages—like FHA (20%), adjustable-rate (16%), VA (9%) and USDA (4%). But make sure you understand the cost differences between a 15-year and 30-year mortgage before locking yourself into significantly higher interest payments over three decades. (Hint: Choosing a 15-year term—or shorter—will save you hundreds of thousands of dollars compared to a 30-year term.)

What would mortgage rates have to be for someone to consider buying?

Rates would need to be less than 5% for most U.S. adults to consider purchasing a home in the next 12 months. Gen Z continues to be willing to accept the highest interest rate (5.20%).

What mortgage rate does the majority of current homeowners have?

The median mortgage rate for U.S. homeowners still paying off a mortgage is 3.91%, and most homeowners with rates under 5% report being happy. But here’s the reality: It’s highly unlikely we’ll ever see rates as low as 2–3% again. That’s why we say, “Date the rate, marry the house.” You can always refinance later if rates drop, but home prices are likely to keep rising. So if you’re financially ready, don’t wait—buy the house now and lock in today’s prices before they climb.

How many people are considering refinancing their mortgage?

Four in 10 of those who are still paying off a mortgage would consider refinancing. Keep in mind, deciding to refinance depends on whether the math works in your favor. Connect with a trusted mortgage lender, like our friends at Churchill Mortgage, to see if refinancing will help you reach your financial goals.

While Most Are Staying Put, Millions Still Plan to Enter the Housing Market

How do Americans feel about their current living situation?

Two-thirds (67%) say they’re happy with their living situation, with happiness being higher among homeowners (80%) compared to renters (52%).

What percentage of Americans have never bought or sold a home?

Four in 10 U.S. adults have never bought or sold a home. It’s not surprising that Gen Z (the youngest group in this study) falls into this category—with 79% having never bought or sold. On the flip side, 28% of adults have only bought (never sold), and 29% have both bought and sold a home in their lifetime.

What percentage of Americans bought or sold in the past year?

Only 3.07% of U.S. adults bought or sold a home in the past 12 months. While that percentage may sound small, it represents millions of buyers and sellers.

What motivated people to buy a house?

Recent home buyers were motivated by the desire to get out of renting and the investment opportunities of homeownership.

People Have a Neutral View of the Housing Market

U.S. adults (42%) are most likely to feel neutral—rather than negative (39%) or positive (19%)—about the real estate market. If you feel like the outlook is tough, there are still smart ways to win. We’ve helped thousands of buyers and sellers make confident moves—and we can help you too. Check out our free Home Buyers Guide, a step-by-step plan that’ll give you confidence about the buying process in any market.

Is it a buyer’s or seller’s market?

People most often report seeing the market as neutral or a seller’s market. But perceptions of a buyer’s market ticked up slightly from 2024.

Check out what Dave Ramsey and John Delony say about the current housing market and the advice they give to buyers:

 

 

What’s the biggest barrier to buying or selling a house?

High prices and mortgage rates are a barrier to both buyers and sellers entering the market in the next 12 months, although some have managed to buy a home despite the housing market conditions.

Among those who have never owned a home, 57% say personal finances are the top barrier, which could include debt and lack of savings. If that sounds like you, one of the best ways you can overcome that challenge is by freeing up your income. We teach people to pay off their debt and build a full emergency fund before stepping into homeownership. We know it isn’t easy. If you’ve had a student loan around for so long you think it’s a pet, it’s hard to see debt as catastrophic to your ability to save for a house. So, use the debt snowball method for the fastest way to pay off debt.

People Want to Learn More About Real Estate

How knowledgeable do buyers and sellers feel about the real estate process?

More than 1 in 3 U.S. adults say they don’t feel knowledgeable about buying or selling a home. That number jumps to 55% among those who say they’re in crisis or struggling with their finances. If that sounds like you, don’t worry—you’re not alone. Get instant access to our free real estate resources or tune into our real estate podcast to grow your confidence and knowledge today.

Trustworthy Real Estate Agents Are in High Demand

What percentage of buyers work with a real estate agent?

The majority of recent home buyers (75%) worked with a real estate agent. And 71% of those who worked with an agent said they were extremely or very satisfied—and it’s easy to see why. The value agents bring to the table is worth every penny. Buyers gain access to far more home listings than they’d find on their own, opening up better options and faster results. And when it’s time to negotiate, nothing beats having a pro in your corner—someone who eats, sleeps and breathes real estate.

What do people want most from real estate agents?

Trustworthiness remains the top priority. When asked what “trustworthy” means in a real estate agent, Americans said:

• 65%: Honest and up-front
• 44%: Professional and ethical
• 39%: Does what they say they’ll do
• 38%: Knows the market and gives good advice

Character outranks sales stats and flashy performance metrics every time. That’s why it’s key to ask the right questions up front—to make sure you’re choosing the agent who’s the best fit for you.

Get Help Buying or Selling a Home With Our Free Resources

High home prices and mortgage rates might make the housing market feel out of reach—but there’s still hope. And we’re here to help. Whether you’re buying or selling, visit our Real Estate Home Base for all the tools and resources you need to prepare with confidence. Or jump-start the process by connecting with a RamseyTrusted^® agent who can help you reach your real estate goals.

If you’re a top real estate agent in your market and want to join our mission by serving buyers and sellers with the financial principles we teach, apply to our RamseyTrusted program.

About the Study: Methodology

The Real Estate Report is an annual research study conducted by Ramsey Solutions to gain an understanding of the personal behaviors and attitudes of Americans toward real estate. There are two parts to the study. The first is a nationally representative sample of 1,043 U.S. adults, which was collected from September 24 to October 7, 2025, using a third-party research panel. The margin of error was ±3.03%.

The second part of the Real Estate Report surveyed 489 U.S. adults who purchased a home in the past 12 months to gain an understanding of recent market conditions. The sample was collected from December 4 to 15, 2025. The margin of error was ±4.43%.

For reference, the age ranges in 2025 for each generation group are as follows: Gen Z is age 18–28, millennials are 29–44, Gen X is age 45–60, and baby boomers and the Silent Generation are 61+. Since August 2023, the Real Estate Report has surveyed over 3,500 U.S. adults.

Previous Reports

2024 Real Estate Report