Inside the minds of homeowners: The four things they really want in 2025

In every housing market, every lender, originator, mortgage broker, or loan officer should endeavor to understand their buyer pool.

Trends and perceptions change annually and generationally — especially when it comes to desires, housing market outlook, and financial thresholds. Having insight into how and what they think can go a long way. It can aid in not only attracting qualified borrowers but also ushering them through the transaction and, ultimately, to the closing table. After all, that’s the point, right? 

There is still a healthy appetite for homeownership in the U.S., as findings from the 2025 ServiceLink State of Homebuying Report show that 47% of respondents plan to purchase a home this year. While millennials (born between 1981 and 1996) are still poised to heavily influence the market, Gen Z (born between 1997 and 2012) is demonstrating a strong desire to become homeowners. 67% of this group say they plan to buy in 2025. 

Soaring price tags and higher than desired mortgage rates have been a thorn in the side for buyers, as these two factors have prevented many from becoming homeowners in recent years. However, when you look beyond the numbers, there’s more to the story than just sticker shock. A deeper dive into the data reveals both the tangible and the intangible items that today’s buyers want and expect in their mortgage and homeownership journey.

Homeowners are thinking big 

We’ll start with the tangible. Potential homeowners of nearly all generations are eager to stretch out a little more as a bigger home with more space ranked first on their list of must-haves.

The need for more space was most popular among Gen Z respondents, who are most likely to be moving out of their parents’ homes and into their digs. Millennials also said a bigger home was atop their wish list. Even buyers’ overall dealbreaker speaks for itself, as the survey found that a home that is too small is a no-go.

That said, this ‘go big or go home’ mentality is something that’s prevalent among the current cohort of buyers and should be a consideration for anyone working with them. In other words, less square footage equals less of a chance they’ll be interested.

More tech, more appeal for homeowners

Until only about a decade ago, applying for and journeying through the mortgage process was quite manual.

However, the infusion of technology has provided a new level of speed and efficiency and has expedited closing timelines – which is what today’s buyers expect. Lenders that offer certain consumer-facing technologies can gain quite a competitive edge. Borrowers in the survey (76% of them, in fact) revealed that they would be most likely to select a lender that offered technology where they could digitally schedule their appraisal or closing appointment from their phone/tablet for the exact day and time of their choice.

Traditionally, the back-and-forth phone tag with an inspector or agent can add days to the timeline, so it’s no surprise that buyers of all generations are interested in the speed and convenience of this type of tech as it aligns with their everyday experiences of instant scheduling and transactions.

Clarity is key 

Even a relatively smooth mortgage process isn’t a great experience unless the borrower understands what’s happening at any given moment.

That’s because prospective homeowners today desire more transparency (and not just at the major milestones). ‘Transparency into the steps and fees’ ranked highest on a list of things borrowers would change about the current mortgage process. That implies that many have been strung along and then stunned by not-so-welcome surprises. Considering this is likely one of the biggest purchases they’ll ever make, buyers simply want to know up front about any hidden fees or processes that could end up costing them in the long run. Simply put, communication and clarity go a long way.

Money-saving opportunities 

With the soaring home prices and higher mortgage rates of late, one thing prospective homeowners are conscious about is saving money anywhere they can. These factors are causing some to consider slightly less traditional avenues of homeownership.

Auction properties have been growing in popularity over the past few years, as survey results indicate that 50% of respondents would be willing to consider buying at auction. A strong contingent view these types of properties as an opportunity for cost-savings, which is the number one motivator, particularly for Gen X and millennials.

While auction properties used to be leveraged more for fix-and-flip activity, a shift is underway as buyers say they would use it as their primary residence instead.

Conclusion

The good news is that homeowners are out there and they’re generally optimistic, but many factors must align to successfully get them to the closing table.

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