Current trends in real estate include a mix of positive and negative developments. The market has been heavily affected by the COVID-19 pandemic which has created a new housing environment that is expected to alter the way we approach real estate for the next few years, and maybe beyond.
Â
Here are the 10 key emerging real estate trends:Â
Increased Homeownership
Homeownership rates have increased in 2020 and are expected to rise by 5% by the end of 2021.
Â
Lower Interest Rates
Lower consumer spending during stay-at-home orders has resulted in lower interest rates, helping affordability ratios.
Â
Â
Steep Increase in Housing Prices
Real estate has entered a seller’s market that may increase inventory, slowing the pace.
Â
Millennial Home Buying Strong
Millennials comprise 38% of the home buyers and seek mid-to-upper-middle-class homes.
Â
Â
Affordable Homes Popular
87% of the homes purchased were resale as millennials opted for homes needing TLC and updating over turnkey properties.Â
Â
Shift to Second-Tier Cities
Real estate investors and buyers moved out of high-cost markets to second-tier cities and suburbs.
Â
Technology Impact
Real estate professionals are using online home selling platforms, apps, social media, and smart home technology to enhance effectiveness.
Â
Mortgage Interest Rates Expected to Settle
As the economy continues to grow, experts expect interest rates to rise and then settle.
Â
More Demand for Luxury Homes
In the 3rd quarter of 2020, high-end home sales increased 60.7% year-over-year and this trend is expected to continue as more buyers prioritize an at-home lifestyle.Â
Â
Smart Home Technology to Attract Tenants
Â
Property managers are offering smart home technology in rental units to attract and retain tenants.Â
Â
The Covid-19 pandemic has left a strong effect on the US housing market. The next decade will be shaped by some of the trends explained here.Â
