6 interior-design trends you'll probably see everywhere next year — and 4 that are disappearing

 
 

As we approach the end of the year, it's time to reflect on home decor and designs we'll want to leave behind — and pieces and styles we'll want to keep an eye out for.

Business Insider spoke to three interior designers about which home trends they think will be in and out in 2025. Here's what they said.

One designer said the line between indoor and outdoor spaces will continue to blur.

Alice Moszczynski, an interior designer at Planner 5D, told BI we'll likely start to see more seamless connections between interior and outdoor spaces.

"This goes beyond just large glass doors as designers are integrating retractable walls, natural ventilation systems, and materials that age beautifully in indoor and outdoor environments," she said.

Natural and handmade materials continue to be popular.

Moszczynski predicts materials like stone, reclaimed wood, linen, and other natural materials that bring warmth, textural richness, and authenticity to a space will become even more popular in 2025.

As people prioritize having unique, personalized spaces, we'll likely see more consumers rejecting mass-produced finishes, too.

"Expect a resurgence of materials that show imperfections, like handmade tiles and unpolished marble," she told BI.

Art-deco styles are coming back to make spaces feel both vintage and fresh.

Lucinda Loya, founder and principal designer at Lucinda Loya Interiors, expects to see a resurgence of the art-deco style next year.

The style, which has roots in Europe and boomed throughout the 1920s and 1930s, is characterized by opulence and modern, geometric patterns.

"The updated trend blends the movement's iconic chevron patterns, zigzags, and sunburst motifs with opulent materials like marble, glass, and polished metal," Loya said.

She predicts we'll see neutrals like black, white, gold, and silver paired with luxe textures like velvet to create "vintage and fresh spaces."

Mirrored surfaces are also becoming trendy.

In line with the art-deco revival, Loya told BI, mirrored, reflective surfaces will also make a comeback to give spaces a touch of glamour.

"Mirrored surfaces reflect natural and artificial light, adding depth and brightness, which is especially valuable in smaller or darker spaces," she said.

Loya also said we'll see mirrored accents paired with matte textures to create elegant designs that balance drama and restraint.

Bold, saturated colors are in.

"More people are leaning into saturated colors — deep greens, dramatic blues, and spicy oranges and golds," Matthew Coates, owner of Coates Design Architects + Interiors, told BI.

Coates expects to see more rooms telling bold, colorful stories as homeowners search for a refreshing break from all-beige interiors.

He anticipates this trend will stick around for a while as more find comfort in creating spaces that reflect themselves.

Mixed metals will be the "it" look this season.

In previous years, mixed-metal finishes might have been considered mismatched. Now, Coates said, they're becoming a popular option for a versatile look.

"Mixing metals gives a room personality and dimension, and it feels more collected over time rather than overly coordinated," he said. "It's perfect for people who want their spaces to feel relaxed but still elevated."

On the other hand, faux biophilia is on its way out.

Biophilic design, which emphasizes connection with nature, has been a popular trend in recent years, but Moszczynski believes the days of faux plants are behind us.

"The trend of artificial plants and green walls to emulate biophilia is losing appeal as people realize these elements fail to deliver the wellness benefits of genuine nature," she said.

Instead, she said, we'll likely see more living plants throughout interior spaces.

The "millennial gray" trend is losing steam.

"Gray-dominated palettes have overstayed their welcome and feel cold, monotonous, and impersonal — particularly in high-end spaces," Moszczynski said.

She predicts that earthy tones like terracotta, clay, ochre, and sage will continue to replace "millennial" gray.

Maximalism with excessive clutter will likely fall out of favor as people prioritize minimalism.

The battle between maximalism and minimalism in the home continues, but Moszczynski predicts the pendulum will swing back toward a refined level of minimalism next year.

Maximalism was pretty big throughout 2024, but people may not be looking to buy a ton of items and decor in the year ahead.

"People are craving more visual calm and functional flow in their homes," she told BI. "Excessive decor often means unnecessary consumerism, which conflicts with the growing interest in sustainability."

We may start to see fewer open-concept spaces over the next couple of years.

Over the last few years, open floor plans have become less popular, and Coates predicts we homeowners will usher in a new chapter of balancing openness and privacy in 2025.

After all, closing off part of an open space can be really impactful.

"Adding a half-wall and a vintage room divider changed the whole vibe of a friend's open-concept living room, making it cozier and more intentional," Coates said.

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Here’s What The Rise of Homeowners Associations Means For Buyers

 
 

When shopping for a home, many buyers may hope to avoid purchasing a property subject to a homeowners association.

But that may be easier said than done.

That’s because HOAs are on the rise in the U.S. Therefore it’s important to understand the ins and outs of these organizations before you buy.

Nearly three-quarters, or 70%, of surveyed homeowners say if they were to buy a new home in the future, they would prefer a community without an HOA, according to recent data from Frontdoor. The home repair and maintenance services company in September polled 1,005 homeowners, 85% of whom are currently part of an HOA.

Why it’s hard to avoid HOAs

Homeowners associations are composed of community residents elected to a board of directors, which govern the neighborhood by a set of rules and regulations. Homeowners pay dues to have common areas like parks, roads, and community pools maintained and repaired.

Such organizations exist for different types of properties, from single-family homes and rowhomes to condominiums and cooperatives.

The presence of HOAs in the U.S. has ballooned over recent decades. In 1970, there were 10,000 community associations with about 2.1 million residents, per the Foundation.

In 2023, about 65% of new single-family homes were built within HOAs, up from 49% in 2009, according to the U.S. Census.

Today, HOA or common-interest communities represent about 30% of the housing stock in the U.S., and house 75.5 million Americans, according to the Foundation for Community Association Research. The entity is an affiliate organization of Community Associations Institute, a membership group for HOAs and other community organizations.

Common-interest communities are becoming more typical because they provide a financial benefit for local governments, according to Thomas M. Skiba, CEO of the Community Associations Institute, a membership organization of homeowner and condominium associations.

“They don’t have to plow the street anymore [or] do all that maintenance and they still collect the full property tax value,” Skiba told CNBC, referring to local authorities.

HOA membership is more common in some areas. Florida has the highest HOA membership rate of 66.86%, or more than 4 million homes in HOAs, according to a data analysis by This Old House, a home improvement site.

“It is truly a luxury in a lot of cases to buy a home that’s not in a community,” said Steve Horvath, co-founder of HOA United, an advocacy group for homeowners in common-interest communities.

How HOAs add to homeownership costs

The price tag that comes with a common interest community will depend on it’s location and the amenities the association offers.

The mandatory membership can cost homeowners as little as $100 a year to more than $1,000 a month, depending on the community, according to the American National Bank of Texas.

Such costs tend to increase over time, and rarely go down. In Frontdoor’s survey, 51% of current HOA members said they experienced an increase in their HOA fees, and 65% say price increases happen frequently.

How to vet an HOA before you buy

Many Americans are satisfied with their HOA. About 60% of surveyed homeowners reported having a positive experience with their community, according to Frontdoor.

But others go through grievances. About 1 in 3 had some experience that made them want to move, Frontdoor found. Of those wanting to leave the neighborhood, 63% complained about fees while 53% cited inconsistent rule enforcement.

“Sometimes HOAs can be really intrusive,” like what colors you can choose from to paint the exterior of your house, said Jim Tobin, CEO of the National Association of Home Builders.

If you’re currently in the market for a home and are unsure if an HOA community is right for you, here are a few things to consider in the shopping process:

  • Ask your real estate agent or the home seller’s agent for a copy of all the HOA paperwork like covenants, bylaws, fee schedule, rules and regulations, experts say. Also ask for meeting minutes, whether annual general meeting minutes or board meeting minutes for the past 12 months, Horvath said. Such documents can be very telling about how an HOA is operated, he said.

  • Inquire about monthly or annual fees, the HOA’s budget and the history of how assessments have grown over the years, according to Skiba.

  • Ask your real estate agent or the seller’s agent if the house you want to buy has any unpaid assessments, said Horvath. Such outstanding balances should be dealt by the seller as part of the sale.

  • Review any pending litigation, disputes or existing judgements within the community, said Horvath.

  • Look into the community’s reserve funds, which ensures repair and renovation. Check if the community is putting enough money aside for big expenses or if they are property funded, Skiba said.

  • Ask if you can attend a board meeting or the member’s annual general meeting if possible.

Read more on CNBC

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Everything You Need to Know About Alternative Fireplaces

 

No chimney, no problem! Alternative fireplaces are hotter than ever. Learn which one could be right for your home.

A fire makes every room feel cozier, and now you can have one pretty much anywhere you want one. Fireplaces powered by alternative fuel sources, such as gas or electricity, don’t require a chimney — or a major renovation. Some are freestanding and just plug into a regular outlet. Keep reading to find out which type is right for you and start shopping!

Gas Fireplaces

Choose this option if you want the look and feel of a wood-burning fireplace without all the hassle.

The Pros:

  • Real heat-emitting flames turn on and off with a switch, remote or app.

  • Fuel doesn’t require refilling. Units connect directly to your home’s gas line.

  • No need to store and transport real logs. (Faux logs or stones should be dusted.)

The Cons:

  • You need to hire a pro to install; the cost could run from a few hundred to more than $1,000.

  • There are two main types: direct-vent (pulls air from outside) and ventless (pulls air from the room). The ventless systems are illegal in some areas, so check local laws.

Electric Fireplaces

This is the clear winner if you want to do the job yourself. Take it out of the box, plug it in, flip a switch!

The Pros:

  • The most common models are 120-volts that plug into an outlet like any other appliance.

  • Many designs let you customize the brightness of the flame and turn off the heat.

  • There are no fumes, smoke or soot.

The Cons:

  • Flames look fake, but some designs lean in with fun flame color choices (like green and purple).

  • Running it for several hours daily on high could cause an uptick in your electric bill. Occasional usage shouldn’t cost more than a dollar or two.

Bio-Ethanol and Gel Fireplaces

These are typically freestanding or wall-mounted. The fuels burn cleaner than wood.

The Pros:

  • Freestanding models are easy to set up and can be placed almost anywhere, even in the middle of a room.

  • They offer the combo of a real smokeless flame and sleek modern design.

  • Venting is not required.

The Cons:

  • You have to manually light and extinguish.

  • Fuel refills are more expensive than natural gas. You’ll need a liter of bio-ethanol or a can of gel for every two to three hours.

  • They don’t provide much heat.

Wood Pellet Stoves

Consider this if you love the look of old-school wood-burning stoves but want to set it and forget it.

The Pros:

  • Wood pellets burn cleaner and more efficiently than logs.

  • Most have easy electric automatic ignition.

  • They give off strong heat that can warm a room nicely. Some have thermostats to set the temperature.

The Cons:

  • A fireplace pro must install a proper vent system, which can cost thousands.

  • You’ll need to refill pellets (a 40-lb bag lasts 8 to 12 hours).

  • Most run on electricity, so it goes out if you lose power.

Read more at HGTV

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This factor can get your mortgage application denied — even if you’re a high earner

 

If you need to get a mortgage to buy a house, make sure your finances are in order — especially your debt to income ratio.

Your debt-to-income ratio is all your money debt payments divided by your gross monthly income. It’s the “number one way” lenders measure your ability to manage the monthly loan repayments, per the Consumer Financial Protection Bureau.

The debt-to-income ratio was the most common reason for a denied mortgage application, at 40%, according to the 2024 Profile of Homebuyers and Sellers report by the National Association of Realtors. 

Other factors that affected homebuyers in the approval process were a low credit score (23%), unverifiable income (23%) and not enough money in reserves (12%), the report found.

The NAR polled 5,390 buyers who purchased a primary residence between July 2023 and June 2024 and found that 26% of homebuyers paid all-cash — a new high.

Lenders look for a ‘healthy’ debt-to-income ratio

Repeat buyers who gained record home equity in recent years drove that trend, according to the NAR.

But for those who need to borrow in order to buy, lenders and institutions look at your debt-to-income ratio to see if you may struggle to add a mortgage payment on top of other debt obligations.

“The higher your debt-to-income ratio is, the less chance they’re going to feel comfortable lending to you,” said Clifford Cornell, a certified financial planner and associate financial advisor at Bone Fide Wealth in New York City.

It’s a factor that affects home applicants of all income levels, said Shweta Lawande, a certified financial planner and lead advisor at Francis Financial in New York City. 

“If you’re a high earner, you might not experience an issue saving towards a down payment, but that doesn’t mean you have a healthy debt to income ratio,” she said. 

Here’s what you need to know about your debt-to-income ratio.

How to calculate your debt-to-income ratio

If you’re looking to apply for a mortgage, the first step is to know what your current DTI ratio is, said Lawande.

Take your total required monthly debt payments, like your monthly student loan or car loan payment. Divide that sum by your gross monthly income, she said. Multiply the result by 100 and you have your DTI expressed as a percentage.

A DTI ratio of 35% or less is typically considered as “good,” according to LendingTree.

But sometimes lenders can be flexible and approve applicants who have a debt-to-income ratio of 45% or higher, Brian Nevins, a sales manager at Bay Equity, a Redfin-owned mortgage lender, recently told CNBC.

A way to figure out your housing budget is the so-called 28/36 rule. That guideline holds that you should not spend more than 28% of your gross monthly income on housing expenses and no more than 36% of that total on all debts.

For example: If someone earns a gross monthly income of $6,000 and has $500 in monthly debt payments, they could afford a $1,660 a month mortgage payment if they follow the 36% rule. If the lender accepts up to 50% DTI, the borrower may be able to take up a $2,500 monthly mortgage payment.

The ‘better’ debt repayment strategy

You can improve your debt-to-income ratio by either shrinking your existing debt or growing your income.

If you have existing debt, there are two ways you can work to pay it off, experts say: the so-called “snowball method” and the “avalanche method.”

The snowball method is about paying off the smallest debt balances first no matter what the interest cost is, which can feel less overwhelming, said Shaun Williams, private wealth advisor and partner at Paragon Capital Management in Denver, the No. 38 firm on CNBC’s 2024 Financial Advisor 100 List.

“One is what’s best on a spreadsheet, and the other one is what makes someone feel best from a behavioral finance standpoint,” Williams said.

Yet, “the avalanche is better because the true cost of debt is your interest rate,” he said, as you’re more likely to pay down the debt faster.

Let’s say you have student loans with a 6% interest rate versus an existing credit card balance accruing a 20% interest rate. If you’re sitting with credit card debt, consider tackling that balance first, Cornell said.

“Whichever one’s costing you the most to borrow is the one that you want to pay down as quickly as possible,” he said.

If you’ve already done what you could to either consolidate or eliminate existing debt, focus on increasing your income and avoid other large purchases that would require financing, Lawande said.

“The goal is to just preserve the cash flow as much as possible,” she said.

Read more at CNBC

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What To Look For From This Week’s Fed Meeting

 
 

You may be hearing a lot of talk about the Federal Reserve (the Fed) and how their actions will impact the housing market right now. Here’s why.

The Fed meets again this week to decide the next step with the Federal Funds Rate. That’s how much it costs banks to borrow from each other. Now, that’s not the same thing as setting mortgage rates, but mortgage rates can be influenced through this process. And if you’re thinking about buying or selling a home, you may be wondering about the downstream impact and when mortgage rates will come down.

Here’s a quick rundown of what you need to know to help you anticipate what’ll happen next. The Fed’s decisions are guided by these three key economic indicators:

  1. The Direction of Inflation

  2. How Many Jobs the Economy Is Adding

  3. The Unemployment Rate

Let’s take a look at each one.

1. The Direction of Inflation

You’ve likely noticed prices for everyday goods and services seem to be higher each time you make a purchase at the store. That’s because of inflation – and the Fed wants to see that number come back down so it’s closer to their 2% target.

Right now, it’s still higher than that. But despite a little volatility, inflation has generally been moving in the right direction. It gradually came down over the past two years, and is holding fairly steady right now (see graph below):

 
 

The path of inflation – though still not at their target rate – is a big part of the reason why the Fed will likely lower the Fed Funds Rate again this week to make borrowing less expensive, while still ensuring the economy continues to grow.

2. How Many Jobs the Economy Is Adding

The Fed is also keeping an eye on how many new jobs are added to the economy each month. They want job growth to slow down a bit before they cut the Federal Funds Rate further. When fewer jobs are created, it shows the economy is still doing well, but gradually cooling off—exactly what they’re aiming for. And that’s what’s happening right now. Reuters says:

“Any doubts the Federal Reserve will go ahead with an interest-rate cut . . . fell away on Friday after a government report showed U.S. employers added fewer workers in October than in any month since December 2020.”

Employers are still hiring, but just not as many positions right now. This shows the job market is starting to slow down after running hot for a while, which is what the Fed wants to see.

3. The Unemployment Rate

The unemployment rate shows the percentage of people who want jobs but can’t find them. A low unemployment rate means most people are working, which is great. However, it can push inflation higher because more people working means more spending—and that makes prices go up.

Many economists consider any unemployment rate below 5% to be as close to full employment as is realistically possible. In the most recent report, unemployment is sitting at 4.1% (see graph below):

 
 

Unemployment this low shows the labor market is still strong even as fewer jobs were added to the economy. That’s the balance the Fed is looking for.

What Does This Mean Going Forward?

Overall, the economy is headed in the direction the Fed wants to see – and that’s why experts say they will likely cut the Federal Funds Rate by a quarter of a percentage point this week, according to the CME FedWatch Tool.

If that expectation ends up being correct, that could pave the way for mortgage rates to come down too. But that doesn’t mean they’ll fall immediately. It will take some time. Remember, the Fed doesn’t determine mortgage rates. Forecasts show mortgage rates will ease more gradually over the course of the next year as long as these economic indicators continue to move in the right direction and the Fed can continue their Federal Funds rate cuts through 2025.

But a change in any one of the factors mentioned here could cause a shift in the market and in the Fed’s actions in the days and months ahead. So, brace for some volatility, and for mortgage rates to respond along the way. As Ralph McLaughlin, Senior Economist at Realtor.com, notes:

“The trajectory of rates over the coming months will be largely dependent on three key factors: (1) the performance of the labor market, (2) the outcome of the presidential election, and (3) any possible reemergence of inflationary pressure. While volatility has been the theme of mortgage rates over the past several months, we expect stability to reemerge towards the end of November and into early December.”

Bottom Line

While the Fed’s actions play a part, economic data and market conditions are what really drive mortgage rates. As we move through the rest of 2024 and 2025, expect rates to stabilize or decline gradually, offering more certainty in what has been a volatile market. 

Read more at KeepingCurrentMatters.com

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