As 2025 approaches, the housing market faces a transformative moment shaped by evolving economic conditions, generational shifts, and changes in buyer behavior. For years, affordability has been a central concern, and while challenges remain, there are signs of stabilization that could define the year ahead. The National Association of REALTORS® (NAR) 2024 Generational Trends Report provides insight into these patterns, offering a glimpse into how the market may unfold next year in our area.
Locally, in Snohomish County, population growth continues to rise, and housing demand remains robust. With its commutable proximity to Seattle and comparatively lower land prices, Snohomish County is increasingly viewed as an attractive alternative for both residential and commercial developers. The region’s blend of suburban charm and urban accessibility has made it a prime location for families, professionals, and retirees alike.
One of the defining aspects of the current housing landscape is the interplay between high mortgage rates and persistent inflation, which have weighed on affordability. These economic pressures have tempered demand in recent years, but the market has seen a modest resurgence among first-time buyers, who made up 32% of transactions in 2024. Millennials, particularly those aged 25 to 43, are at the head of this resurgence. As the largest generational group of buyers, they are leveraging savings, family support, and adaptability to navigate market challenges.
However, for many, economic hurdles such as student loan debt and rising rental costs have delayed entry into the market. This has created a dynamic where younger buyers are eager yet constrained. In Snohomish County, affordability remains a key driver of demand, as buyers seek refuge from the steeper prices of Seattle while still benefiting from its economic opportunities. Looking at 2025, the stabilization of mortgage rates could encourage more activity, particularly if affordability initiatives and incentives work to make homeownership more accessible.
Generational dynamics are another pivotal factor. Millennials and Generation Z, representing over 40% of buyers, are exerting significant influence on housing trends both locally and nationally. Their priorities, such as proximity to work, access to urban amenities, and the desire for smaller homes, are reshaping development strategies. Meanwhile, baby boomers—who account for 45% of home sellers—are downsizing, moving closer to family, or transitioning to senior-friendly housing. Their decisions have a profound impact on inventory availability, particularly in the homes which are most attractive to younger families.
Suburban and small-town living have emerged as strong preferences across generations. Nearly 50% of all buyers in 2024 chose suburban settings, valuing affordability and the space that these areas provide. In Snohomish County, communities like Lynnwood, Everett, and Lake Stevens continue to attract buyers with their mix of affordability and family-friendly amenities. This trend reflects a convergence of needs, from young families seeking room to grow to retirees drawn to quieter lifestyles.
Sustainability is also becoming a critical consideration for buyers, particularly younger ones. Features like energy-efficient heating and cooling, renewable energy options, and environmentally friendly designs are no longer luxuries but expectations. Homes equipped with these features stand to command higher values and more interest in the market. In Snohomish County, where natural beauty is a key part of its appeal, environmentally conscious buyers are particularly drawn to homes that reflect their values.
Technology is also playing an increasingly central role in real estate. Younger generations in our area are highly reliant on digital tools— from browsing online listings to participating in virtual tours. In 2024, online information was essential to 85% of millennial buyers. As technology evolves, REALTORS® must adapt to meet the needs of an increasingly digital audience.
Despite these promising developments, the housing market still has challenges. High construction costs, zoning restrictions, and limited inventory remain significant obstacles. Multi-generational living is on the rise, with 14% of buyers opting for homes that can accommodate extended families. This trend reflects the economic pressures many households have faced due to rising inflation and stagnation in the economy.
Nevertheless, across all generations, REALTORS® remain the most trusted resource for buyers and sellers alike. From guiding first-time buyers through the complexities of the purchasing process to assisting downsizing seniors with tailored advice, REALTORS® provide invaluable expertise. In Snohomish County, where the market offers both challenges and opportunities, their role is more important than ever in helping clients navigate this dynamic landscape.
Next year promises to be a pivotal moment for housing. By understanding local trends, leveraging technological tools, and fostering collaboration among stakeholders, REALTORS® can help build a more resilient and accessible market.
For more information about buying or selling a home, be sure to work with a REALTOR®, a member of the National Association of REALTORS®. Snohomish County Camano Association of REALTORS® is the voice for real estate in Snohomish County. If you have questions for The Expert about real estate email us at [email protected], or visit www.sccar.org for more information
