Interest rates

The inflation rate, which had been on a decline from its COVID-induced peak in mid-2022, has now reversed course, steadily increasing from 2.3% in early 2025 to its current rate of 4.2%.

FOMC rate cuts 鈥� three in 2025 鈥� that were key to dialing back mortgage rates are now frozen in place as economists keep a watchful eye on rising inflation.

On June 17, newly appointed Federal Reserve Chair a unanimous decision to maintain the target range for the federal funds rate at 3-1/2 to 3-3/4%, noting, 鈥淚nflation remains elevated relative to the Committee’s 2% goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy.鈥�

In anticipating the FOMC鈥檚 June decision, Jeff Taylor, a board member for the Mortgage Bankers Association and founder of Mphasis Digital Risk, told in late May that homeowners and buyers should expect mortgage rates to remain in the mid-to-upper 6% range throughout 2026, with potential for rates to move into the 7% range if the Iran conflict is protracted. 鈥淭his conflict has caused inflation, which causes investors to sell mortgage bonds, which pushes rates higher,鈥� he said.

Shandor Whitcher, an economist with Moody’s Analytics, concurred with Taylor鈥檚 outlook during an on June 17. 鈥淚n terms of treasuries, we expect the 10-year to remain elevated due to fiscal policy and the overall inflationary environment. At most, we may see modest declines of a few basis points in the 30-year fixed rate mortgages, but overall rates will remain above 6% for the foreseeable future and are more or less where they are going to be through the end of the decade.鈥�

Global economic concerns

Even as real estate professionals keep their eye on what is happening in Washington, the global economy is also an important consideration, as international conflicts have a trickle-down effect on the U.S. economy and hence the real estate market as well.

The World Economic Forum鈥檚 noted that the U.S. continues to trail global growth, with World Output reaching 3.4% in 2025, while the U.S. reported 2.1% GDP growth. The U.S. is anticipated to trail again in 2026 and 2027 at 2.3% and 2.1% respectively, with global growth projected at 3.1% and 3.2%, respectively.

JPMorgan Chase & Co. came to similar conclusions in its , projecting modest growth of 2.1% to 2.3%, softened by higher energy prices and geopolitical developments. On the upside, steady labor markets and tech investment are expected to keep the overall economy on an even keel.

Beyond the obvious economic drivers, world economists are now focused on more concerning developments 鈥� headlined under the unexpected consequences category 鈥�  and that is the long-term effect on world food production as well as the inflationary consequences of higher food prices triggered by the closing of the Strait of Hormuz.

In its May 28 article, , Chief Economist Maximo Torero of the Food and Agriculture Organization of the United Nations (FAO) noted that the blockade has severely disrupted global fertilizer supply chains just as planting seasons advance across both hemispheres.

鈥淎s farmers face urea fertilizer price increases of 20% to 60%, on top of rising fuel, transport, and irrigation costs, the greatest risk is not immediate food shortages but rather cascading shocks that reduce future food production,鈥� Torero explained. 鈥淚t begins with energy-price spikes and logistics disruptions, followed by fertilizer shortages, then lower yields, with delayed transmission effects eventually leading to higher food prices and market volatility months later.鈥�

In the World Economic Forum鈥檚 May 2026 , 94% of surveyed chief economists were anticipating higher global inflation in the coming year.

鈥淓nergy and food prices are identified as primary drivers, with supply shocks projected to have lasting effects,鈥� the WEF noted in the executive summary. 鈥淲hile 58% of respondents do not see a global recession as imminent, there are limited expectations of increased economic resilience in the short term.鈥�

Resilience and stability

On the positive side, economic activity in the U.S. continues at a solid pace, prompting the labor market to add 172,000 jobs in May 鈥� exceeding economists’ expectations.

Stability in the job market is always a good indicator for steady home sales, and as volatility eases 鈥� should the Iran conflict resolve 鈥� there is anticipation that sales could improve through the summer.

鈥淪tronger employment momentum has helped existing home sales reach a five-month high,鈥� said Sam Khater, Freddie Mac鈥檚 chief economist, in a . 鈥淚mportantly, we’re seeing homebuyers look past the short-term rate fluctuations and actively enter the market, signaling renewed confidence in homeownership opportunities.鈥�

Although the market faces plenty of headwinds and affordability continues to keep potential buyers out of the market, the housing market is considered by some to be in a normal phase, with home prices growing at a more manageable pace and supply becoming far steadier, bringing a market long considered a sellers鈥� market back into balance.

One sign of this balance 鈥� one that favors homebuyers 鈥� is the growing incidence of seller concessions. In addition to a greater incidence of outright price cuts, sellers are more likely to assist the buyer with closing costs or may offer financial credits instead of completing requested home repairs.

Final note

Although muted, the housing market is exhibiting signs of strength, with home prices remaining steady, foreclosures proceeding at a very modest pace, and income growth offering hope for potential purchase activity in the future.

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Hoping the economic and political volatility of 2025 will soon be in the rearview mirror, economists are forecasting modest 2026 GDP growth of 1.8鈥�2 percent in the U.S. 鈥� numbers that have improved over the past few months, along with a return to moderating inflationary trends.

In his , Fed Chair Jerome Powell was even more optimistic, projecting that real GDP will rise 1.7 percent this year and 2.3 percent next year, somewhat stronger than the Fed projected in late summer.

In announcing a one-quarter point drop in the Fed Fund interest rate in December, Powell broadly hinted at the FOMC鈥檚 intention to hold to that course in 2026, with no further rate cuts intended in the near term.

鈥淗aving reduced our policy rate by 75 basis points since September and 175 basis points since last September, the fed funds rate is now within a broad range of estimates of its neutral value, and we are well positioned to wait to see how the economy evolves,鈥� he said, adding, 鈥淥ur two goals are a bit in tension. Everyone around the table at the FOMC agrees that inflation is too high, and we want it to come down and agrees that the labor market has softened and that there is further risk. Where the difference lies is how you weight those risks and, ultimately, where do you think the bigger risk is?鈥�

One of the challenges the FOMC is facing as it moves forward is the lack of access to data during the government shutdown and the possibility that the data that will emerge could be distorted.

鈥淲e’re going to need to be careful in assessing particularly the household survey data,鈥� Powell said. 鈥淭here are very technical reasons about the way data are collected in both inflation and in labor so that the data may be distorted. So, we’re going to get data, but we’re going to have to look at it carefully and with a somewhat skeptical eye by the time of the January meeting.鈥�

Interest rate cut welcome. Is it enough?

Despite a third cut in interest rates over the past six months, forecasters are predicting that without further cuts, mortgage interest rates may stay stubbornly in the 6 percent range in 2026, preventing some buyers from entering the market and restraining sellers who hold 3鈥�4 percent mortgage rates from jumping back into the market.

But even at 6 percent interest rates, the real estate industry is confident that home sales will increase 10鈥�14 percent in 2026, with the 星空传媒 Association of Realtors (NAR) on the optimistic side of that prediction.

At the Dec. 9 , Chief Economist Lawrence Yun鈥檚 predictions were generally upbeat, citing a 14 percent increase in existing home sales, a 5 percent increase in new home sales, a 4 percent increase in home prices, a modest gain of about 400,000 jobs, and an unemployment rate that ticks up to 4.5 percent.

Still, the growth in home sales is not a slam dunk in 2026, as homebuyers face several hurdles. Inflation has made it difficult for first-time homebuyers to save a downpayment while also driving up the cost of new construction.

A long-term issue that continues to fly under the radar is wage disparity itself, which has put the dream of homeownership out of reach for an increasing larger swath of the population since 2000, reducing the potential pool of homebuyers.

One telling stat presented by Yun at the NAR conference was homeownership percentage by age group. While ownership numbers are stable in the 55+ age group, it has fallen in all other age groups 鈥� down 3 percent in the under-35 age group, down 1.5 percent in the 35鈥�44 age group, and down nearly 2 percent in the 45鈥�54 age group. While 2 percent may not seem like a substantial number, it potentially represents 2 million households who are renting rather than owning.

Further evidence of that shifting dynamic was evident in 2023, when there were a reported 130 million households in the U.S., with 85 million owner-occupied and 45 million renter-occupied, representing a new high for the percentage of households renting vs. owning. This is due in large part to three factors: affordability issues, growing investor dominance in the moderately priced home market, and the failure of new home builds to fill the more moderately priced home market gap.

While 2025 is ending on a positive note economically, consumers will be a key driver in the housing market in 2026, and consumer confidence unexpectedly plunged in November, according to Dana M. Peterson, Chief Economist, .

鈥淎ll five components of the overall index flagged or remained weak,鈥� he said in The Conference Board鈥檚 Nov. 25 release. 鈥淐onsumers were notably more pessimistic about business conditions six months from now. Mid-2026 expectations for labor market conditions remained decidedly negative, and expectations for increased household incomes shrunk dramatically, after six months of strongly positive readings.鈥�

Moderating home prices, increased inventory, a stable job market, and lower inflation all represent the positive environment the real estate industry has been hoping to see in 2026. Although consumer confidence and affordability may prevent 2026 from being a true breakout year, expectations for modest improvements are well supported.

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Congress is entertaining several proposals this year to modify current capital gains tax regulations on the sale of homes, and the real estate industry is championing the proposals, hoping more generous exemptions will encourage long-term owners to put their homes on the market.

But would such a change in the law be enough to move the needle? To explore that question, we鈥檒l consider the current capital gains structure, and the proposals under consideration.

How current capital gains are assessed

The Taxpayer Relief Act of 1997 set the current exemption levels for the sale of a primary residence, which allows a sole owner to exclude up to $250,000 in capital gains and a married couple filing jointly to exclude up to $500,000 from their tax liability.

These gains can be reduced by showing proof of capital upgrades, which include new additions, garages or porches; new roof, siding, driveway or deck; energy efficient upgrades such as insulation, solar or siding; and replacing major systems such as furnace, central air, electrical or plumbing systems.

What was not included in the original legislation was any consideration for inflation. Realtor.com estimates that in the nearly 30 years since the law was passed,

Proposed legislation

There have been three bills introduced in 2025 to address the outdated capital gains tax threshold:

The More Homes on the Market Act of 2025 (H.R.1340)

Introduced in February, the bill would increase the exclusion for capital gains for sole owners from $250,000 to $500,000 and for couples from $500,000 to $1,000,000. The bill also includes a provision that would adjust these numbers over time for inflation. This bipartisan bill may have the best chance of passing, and proponents believe it could have an impact not only on the current availability of homes for sale but also ensure future supply.

Capital Gains Inflation Relief Act of 2025 (S. 798)

Also introduced in February, the bill would index capital gains to inflation, and while the bill is broad in its reach, it does include the sale of property and so would provide some relief to home sellers. This bill is complicated, however, because it impacts such a wide swath of capital gains taxes and is likely to lag in Congress, promising no quick fix for the housing market.

No Tax on Home Sales Act

Introduced in August, this bill would eliminate capital gains entirely on the sale of all primary residences. The downside is that it would cost the federal government billions in lost revenue, which would likely need to be offset by higher taxes elsewhere.

Who benefits?

Assessing the market impact of these proposals also requires asking how widely the effects would be felt among homeowners, and whether the number is large enough to meaningfully shift housing supply. To understand who would benefit from any adjustment to the capital gains tax, it鈥檚 important to look at the sectors of homeowners who have accrued capital gains that exceed the current thresholds.

It is estimated that about 25% of current homeowners 鈥� sole and couple ownership 鈥� have realized a $250,000+ gain since purchasing their home. According to the 星空传媒 Association of Realtors, approximately 38% of homeowners are single owners, so only that percentage of current homeowners would be subject to the $250,000 threshold. Approximately 8% have realized a gain exceeding $500,000.

Given the benefit accrued to married couples, this calculates out to approximately 10% of current homeowners who would actually have a capital gains burden if selling their home under the current regime.

A recent estimate prepared by seemed to concur with these numbers, estimating that only 10.3% of homeowners are above the current exception. The report indicated that those who would benefit would be wealthier, higher-income and older on average, noting that the average net worth of those homeowners is $5.7 million, their average income is $431,000, and the average age is 64.

came to a similar conclusion, noting that the median value of homes that have gained $500,000 is approximately $1.3 million, while the median home value for those homes that have gained $250,000 is $720,000, indicating that those most impacted by the current rates are also among the wealthiest homeowners.

Homeowners on the East and West Coasts, where home values have climbed most rapidly over the past several decades, are also more likely to benefit.

California, Hawaii, Massachusetts, Washington, New Jersey, Rhode Island, New Hampshire, Utah, Idaho and Colorado are the states with the highest share of homes above capital gains thresholds. States in the heartland report negligible numbers exceeding the gains threshold, including Kentucky, Indiana, Nebraska, Louisiana, West Virginia, Wyoming, Oklahoma, Iowa, North Dakota and Mississippi.

How a higher threshold (or no threshold) benefits the real estate market

While there appears to be agreement that the current thresholds are outdated, and likely to penalize long-time elderly homeowners, particularly those who have been widowed, there is less of an understanding of how effective the legislation will be at releasing more homes into the market 鈥� a major concern for the real estate industry.

Although the current inventory of homes for sale is in the 4.6-month range, that inventory could be gobbled up very quickly if the Federal Reserve continues to dial back rates and homebuyers who have sat on the sidelines head back into the market in greater numbers.

From a long-term perspective, raising the threshold seems imperative, as more homeowners will cross that threshold in the coming years if the adjustment is not made, incentivizing a larger number of long-term owners to stay put.

that found:

• By 2030, 56% of homeowners (47 million) are projected to exceed the $250K threshold鈥� and nearly 23% (20 million) could surpass $500K.
• By 2035, nearly 70% (59 million) could surpass $250K and 38% exceed $500K cap.
• Eight states could have more than 40% of owners above the $500K cap by 2030; 20 states by 2035.

However, if the change reaches only 10% of current homeowners, most in higher-income tiers, its effect may be modest. Raising the exclusion might release some upper-tier homes, but it may not resolve the fundamental shortage of affordable housing for lower- and middle-income consumers.

Potential homebuyers may still be on the sidelines in 2026 if the shortage of affordable housing is not addressed in a more meaningful way 鈥� with the industry working alongside national, state, and local governments, as well as community and charitable organizations.

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On the strength of a growing economy and softening inflation in 2024, real estate sales looked promising coming into 2025. But burgeoning economic instability has dialed back expectations for both economists and consumers.

In May, the World Economic Forum released the , noting the volatility fueled by tariff wars is likely to have long-ranging effects.

鈥淭he chief economists were largely aligned in their assessment that higher tariffs and persistent trade tensions would fuel inflation and suppress trade volumes,鈥� the organization reported.

The effect, according to the , is that advanced economies 鈥� specifically the U.S. and European countries 鈥� are likely to experience only modest growth at 1.5% in 2025 with little improvement expected in 2026. Emerging markets and developing economies are anticipated to lead the world with 4.1% growth, with overall global growth to remain in the 3% range for the near future.

Given the uncertainty, the U.S. real estate market is facing several headwinds as the 2025 market winds down and we head into 2026.

Consumer confidence

Economic instability has taken a toll on consumer confidence, with the numbers plummeting in April, according to The Conference Board. Although there was some improvement in July, confidence remains low in significant areas.

鈥淭he Expectations Index 鈥� based on consumers鈥� short-term outlook for income, business, and labor market conditions 鈥� rose 4.5 points to 74.4,鈥� the organization reported in its . 鈥淏ut expectations remained below the threshold of 80 that typically signals a recession ahead for the sixth consecutive month.鈥�

The Conference Board also noted that consumer appraisal of current job availability weakened for the seventh consecutive month, reaching its lowest level since March 2021, a sentiment which tracks employment conditions on the ground.

Job growth has diminished dramatically over the past several months, with new jobs averaging only 97,000 per month so far this year, half that of 2024, which posted an average of more than 180,000 jobs per month.

Consumer jitters are also likely to impact GDP, , which report that personal consumption expenditures are slowing sharply.

鈥淧ersonal consumption expenditures in the second quarter grew by only 0.9%, the slowest pace since the pandemic,鈥� the news agency noted. 鈥淎nd in real terms, consumer spending has completely flat-lined in the first half of the year.鈥�

Affordability

The 星空传媒 Association of Realtors that June housing market activity was slow largely due to affordability issues, with the median existing-home price reaching an all-time high and marking the 24^th consecutive month of year-over-year price increases.

NAR highlighted in the brief report that local markets are attempting to increase construction of affordable housing by issuing more building permits, but it is unlikely to address the long-term systemic issue of housing affordability.

Recent studies have pointed to a larger issue; that lower- and middle-income households are unable to afford even the most modest construction due to their reliance on low wage jobs. The value of that moderate income has been eroded further through inflation, as the cost of goods, services and housing continue to escalate faster than wage growth.

While local housing assistance programs and affordable housing construction can help to some extent, until income disparity is addressed in a broader societal context, homeownership may remain out of reach for a growing percentage of the U.S. population.

Interest rates

In the , economists Mike Fratantoni and Joel Kan forecasted interest rates to end the year at 6.7%, moderating only slightly in 2026 to 6.4%.

鈥淚f the economy does enter recession, mortgage rates are likely to drop faster than in our baseline forecast, which would push up refinance volume, but would lead to a sharper increase in the unemployment rate, which would slow the purchase market,鈥� they noted. 鈥淎lternatively, if the tariffs result in stickier inflation rather than just being the result of a one-time price increase, the rate path could go higher, leading to fewer refinances.鈥�

Given the uncertainty ahead, they adjusted their 2025 origination forecast as follows:

• Total origination volume is expected to increase to $2.02 trillion
• Purchase originations will reach $1.4 trillion compared to $1.3 trillion in 2024
• Refinance originations are expected to increase to $664 billion from $491 billion

As inventory continues to improve, Fratantoni and Kan said home price appreciation is likely to slow to one percent by the end of 2025 with home prices remaining flat in 2026 and 2027 as demand slows.

Inflation

Inflation may be the key to what happens next for the real estate market.

The CPI readings for June showed a slight pick-up in inflation, with inflation increasing to 2.7 percent compared to the same month a year ago, the highest growth rate in five months, but below the anticipated 3%+ range.

The slower-than-expected pace of inflation provided some hope that while the tariffs may have a temporary impact on inflation, eventual moderation may open the door for the Federal Reserve to provide some much-needed interest rate relief for the market by 2026.

Given the uncertainty ahead, examining how all of these factors intersect with and apply to the local economy will help real estate agents, loan officers and title companies improve their ability to forecast and prepare for their own local market opportunities.

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Investment firms Goldman Sachs and Charles Schwab are particularly optimistic about the potential for growth and expansion in the economy in the coming year.  predicts GDP growth will reach 2.5% for 2025. 鈥淭he US economy is in a good place,鈥� said David Mericle, chief U.S. economist in GSR. 鈥淩ecession fears have diminished, inflation is trending back toward 2%, and the labor market has rebalanced but remains strong.鈥�

Internationally,  envisions consistent 3% growth across the board in 2025, despite trade war concerns emanating from the threat of increased tariffs.

鈥淣ot one of the top 45 economies in the world are expected to be in recession next year,鈥� said Jeffrey Kleintop, Managing Director, Chief Global Investment Strategist in a Dec. 2 release. 鈥淢ost are expected to grow faster in 2025, including Europe, Japan, Canada, and the U.K., according to the latest outlook from the Organization for Economic Cooperation and Development (OECD), International Monetary Fund (IMF), and the consensus of economist forecasts tracked by Bloomberg.鈥�

While all of this should point to an improving housing market, there are still plenty of headwinds for consumers, including the elevated cost of living in general, as well as a tight housing market that has kept prices from moderating despite dwindling sales over the past year. That is not expected to change heading into 2025.

Recent data indicators, including resilient employment and cooling inflation, point to a stronger economic foundation, especially if interest rates moderate in 2025.

The Consumer Price Index rose 2.6% through October, up from 2.4% in the September data, but moderate compared to the peak of 9.1%. Employment has been surprisingly resilient with an unexpected jump in jobs numbers in September after a sluggish summer. And although jobs bottomed out in October due to two hurricanes and several significant labor strikes, the economy quickly rebounded by adding a healthy 227,000 jobs in November.

The continued strength of the economy has allayed some consumer fears, opening the door to the potential for increasing home sales in 2025.

Consumer Confidence

Although inflation has diminished consistently through 2024, persistent elevated prices from two years of high inflation continued to contribute to consumer frustration. As job growth lagged over the summer, consumers became increasingly pessimistic, but according to , that tide is beginning to turn.

 鈥淐onsumer confidence continued to improve in November and reached the top of the range that has prevailed over the past two years,鈥� said Dana M. Peterson, Chief Economist at The Conference Board. 鈥淣ovember鈥檚 increase was driven by more positive consumer assessments of the present situation, particularly regarding the labor market. Compared to October, consumers were also substantially more optimistic about future job availability, which reached its highest level in almost three years.鈥�

The question foremost in the minds of real estate professionals is will all of this good news result in a stronger real estate market in 2025.

Interest rates hold the key to 2025 housing market

On Sept. 18, Federal Reserve Chair Jerome Powell announced a widely expected .5% point rate cut, saying it reflected the agency鈥檚 鈥済rowing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate growth and inflation moving sustainably down to 2%.鈥�

More significantly, Powell noted that FOMC participants at the meeting prepared individual assessments of an appropriate path for the federal funds rate, determining that if the economy evolves as expected, the appropriate level of the federal funds rate would be 4.4% at the end of this year and 3.4% at the end of 2025.

The FOMC followed up with a 0.25% rate cut in November. However, during the December meeting, policymakers signaled a more restrained outlook for future rate cuts, reflecting concerns about inflation and broader economic conditions. The updated 鈥渄ot plot鈥� now indicates expectations for only two quarter-point cuts in 2025, marking a slower pace of monetary easing than previously anticipated.

Despite the Fed鈥檚 actions, mortgage rates have remained elevated, hovering around 6.5% through the final quarter of the year. This persistence in higher rates has further tempered expectations for the housing market.

In its , Freddie Mac noted that while the U.S. economy remained resilient with strong Q3 growth, unexpected volatility in mortgage rates has weighed on housing and mortgage activity.

鈥淎s we get into 2025, we anticipate that rates will gradually decline throughout the year,鈥�  the GSE reported. 鈥淭he expected decline in mortgage rates in 2025 should loosen some of the rate lock-in effect for existing homeowners, offering more inventory in the market.鈥�

However, in its November Spotlight Report, Freddie Mac noted that the housing market continues to be plagued by a housing shortfall, which has persisted for years.

鈥淗ousing affordability remains one of the top economic issues facing American households,鈥� the GSE noted. 鈥淏oth homeowners and renters have seen the cost of housing increase faster than other consumer prices, putting a significant strain on household budgets. As we have documented in several previous research notes,  the root cause of decreased housing affordability is the fact that housing supply has not increased enough to match demand. Inadequate housing supply leads homeowners and renters to bid up the sale price and rent of available housing, which puts a squeeze on affordability.鈥�

Fannie Mae has also revised its home sales projections for 2025, saying they are expected to rise by only 4% next year. According to the  from the Fannie Mae (FNMA/OTCQB) Economic and Strategic Research (ESR) Group. the downward revision to the existing home sales outlook, which was previously forecast to rise 11% in 2025, is the result of significant upward movement in mortgage rates.

鈥淲hereas previously the ESR Group had expected mortgage rates to dip below 6% in early 2025, the revised forecast now shows mortgage rates ending 2025 at 6.3% and remaining above 6% through 2026,鈥� the report noted. 鈥淭he ESR Group does expect a significant improvement in existing home sales of around 17% in its inaugural 2026 forecast, as affordability conditions improve, the lock-in effect weakens, and pent-up demand to move materializes. Furthermore, the ESR Group continues to expect new home sales to improve on already-robust levels in both 2025 and 2026, as homebuilders continue to offer buyers incentives to move existing inventories.鈥�

A changing market

For real estate agents, the volatility of the 2024 real estate market was compounded by the 星空传媒 Association of Realtors (NAR) settlement, which brought significant changes to real estate practices. While these changes led many part-time agents to exit the profession, full-time professionals have quickly adapted and are ready to move forward under the new system.

In the mortgage arena, lenders have encouraged their loan officers to become far more consultative with their clients to ensure borrowers have the tools and knowledge to make the best decisions about the range of home they can afford and to be prepared to increase their downpayment to make their monthly payments more affordable.

Affordability and availability are going to be the keynote for a real estate comeback in communities across the U.S. in 2025 due to high interest rates and the persistent escalation of home prices. Migration trends may shift from states impacted by environmental disasters or housing markets that are overpriced to areas that boast affordability, availability and with fewer downsides such as high taxes and climate impact.

Real estate professionals should stay vigilant and adapt to these evolving trends within their regions, positioning themselves to better navigate market challenges and seize emerging opportunities in 2025 and beyond.

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