Does Homeownership Still Make Sense in 2025?

5 Clear Reasons Why the Answer Is Yes

1. Scarcity drives value: Housing inventory remains tight, especially for entry-level homes. This limited supply keeps prices supported even during economic slowdowns, making homeownership one of the most resilient long-term investments. New listings dropped 1% year-over-year, sellers are pulling back.

    

2. Rates are expected to fall — and that will unleash demand: When mortgage rates eventually drop, more buyers will re-enter the market, pushing prices higher. Buying before that demand wave hits positions you to benefit from rising home values. Median monthly mortgage payment averaged $2,742 at current rates, a 1.6% year-over-year increase, but the lowest level in four months.

    

3. You can refinance, but you can't re-buy at today's price: Even if current rates feel high, locking in a purchase now gives you the option to refinance later. Waiting could mean missing out on the opportunity to own before home prices climb further. Median days on market increased by five to 37 days and active listings rose to 1,184,250, up 14.1%. That’s still the smallest increase in a year. It gives a window to negotiate.

    

4. Long-term ownership builds real wealth: Unlike renting, homeownership lets you build equity over time through appreciation and principal pay down. It remains one of the most reliable paths to generational wealth in America.

    

5. Political pressure is building for rate cuts: With major candidates promising new Fed leadership focused on lowering rates, monetary policy is likely to shift in favor of homebuyers. This gives buyers a rare chance to get ahead of the next market upswing. See last week’s newsletter for more.