February 18, 2025

Housing Outlook for 2025

Lots of economic prognosticators are making predictions about what we can expect re: housing costs, inventory, and mortgage interest rates in 2025. One source foresees new-home sales and single-family housing starts TAKING OFF this year, thanks to pent-up demand. Builders nationwide plan to construct about 1.1 million homes, which is a 13.8% increase from 2024.

And how does that trickle down to the housing market in the Denver Metro area, you might ask? In surrounding cities and towns like Parker, there will also be significantly more inventory thanks to new home construction. It’s a boost that will give home buyers more options, more negotiating power, and a pathway to the home of their dreams.

Looking Glass Builders Report Optimism 

The four premium builders in Looking Glass | Parker are optimistic about the outlook for the rest of this year. Together they project 236 new home starts in the master-planned community in 2025, and 322 in 2026. 

Taylor Morrison and D.R. Horton were joined by Dream Finders Homes in 2024, and by mid-year 2025 Richmond American will begin building homes in Looking Glass – both paired (duplex) product and single-family homes. Home buyers interested in parks, trails and neighborhood amenities, can look forward to an early fall Model Home Tour event in Looking Glass to showcase all four builders’ new home products.

Though mortgage rates that are still hovering between 6 and 7 percent might challenge some first-time home buyers, both Zillow and Nerd Wallet report prospective buyers are hopeful about closing on a home in 2025. With a little patience, buyers can research the markets where they want to live and be prepared for quarter and half-point dips — with one finger on the trigger to lock in lower rates.

New Home Buyer Profile

Most new construction buyers make anywhere from $50,000-$100,000/year (40%) to $100,000-$200,000/year (29%) and 75% have owned at least one home before.  Buyers who purchased new construction did so because they wanted never-before-lived-in space, with new systems, roofs and appliances. According to a Realtor.com survey of new-home buyers, they also value the customizability of new construction and its resale value. 

Builders have noticed more millennials searching for newly constructed homes in their quest to buy a house — especially now that the cost spread between new and resale has shrunk to less than $26,000. Not only that, the Denver Business Journal reports that while boomers own an outsized share of homes in this country, nearly half of them say they’ll never sell – which makes new construction a viable, available alternative.

Developer Jerry Richmond, President, Integrity Land Ventures says Looking Glass builders are ready to meet the needs of millennials searching for new homes. “Our new home builders also have more leverage than the resale market to negotiate costs with things like sales incentives and 2-1 mortgage rate buy-downs,” he added. 

Time for Cozy Wellness

The forecast for interior design is out with the cold! Interior designers have moved away from icy, sterile grays and blues and toward warmer, cozier color palettes – as evidenced by Pantone’s 2025 Color of the year:  Mocha Mousse. Often this chocolatey hue is accessorized with pastels like dusty greens and subdued corals.

Many bathrooms are now being designed as “wet rooms,” a luxurious feature most often found in high-end hotels. It’s the latest spa-inspired upgrade to start appearing in new and remodeled homes. A wet room combines the shower and bathtub into one waterproof space without a shower curb or enclosure. 

According to Zillow analytics, wet rooms are part of a growing emphasis on wellness design. As buyers become increasingly attuned to the ways their home impacts their physical and mental well-being, those features have become increasingly popular. 

Geo-Thermal, Solar Tiles and Rainwater Harvesting

Today’s home buyers want electric and smart features in their living spaces and are looking to “live their values”. House hunters today are seeking homes with sustainable and environmentally friendly features like geo-thermal heating and cooling HVAC and rainwater harvesting systems. Also popular, solar roof tiles and “virtual net metering”, where you can sell surplus power back to the grid or pool it with neighbors for mutual benefit.  And the option of whole-home batteries is gaining momentum to store excess energy to act as generators during a power outage.

Love Where You Live: Looking Glass

One thing that hasn’t changed for young families and active house hunters is access to trails and paths, neighborhood parks, and nearby grocery stores, restaurants, entertainment and shopping. 

The master-planned community of Looking Glass checks all the boxes with its growing list of amenities, access to 130 acres of open space, 22 miles of trails, five neighborhood parks, community connections, and all that Parker has to offer. Stop by the beautiful model homes from D.R. Horton, Taylor Morrison, and Dream Finders Homes from the $600s – and coming soon, Richmond American Homes.