10 New Real Estate Trends

Current  trends  in real  estate  include  a  mix  of  positive  and negative  developments. The market  has  been  heavily  affected  by  the Covid-19  pandemic  that  has  created a  new housing  environment  which is  expected to  alter  the  way  we  approach real estate  for  the  next  few years, and maybe  beyond.  

Here are  the 10  key  emerging  real  estate  trends:

  1. Increased Homeownership  –  Homeownership rates  have  increased in 2020 and are  expected to  rise  by  5% by  the  end of  2021.  
  2. Lower Interest Rates  –  Lower  consumer  spending  during  stay-at-home orders  have  resulted in lower  interest  rates, helping  affordability  ratios.  
  3. Steep Increase  in  Housing  Prices  –  Real  estate has  entered  a  seller’s  market that  may  increase  inventory, slowing  the  pace.  
  4. Millennial Home  Buying  Strong  –  Millennials  comprise  38% of  the  home buyers  and seek  mid-to-upper-middle  class  homes.  
  5. Affordable Homes Popular  –  87% of  the  homes  purchased were  resale  as millennials  opted for  homes  needing  TLC  and updating  over  turnkey properties.  
  6. Shift to Second-Tier  Cities  –  Real  estate  investors  and buyers  moved out  of high-cost markets  to  second-tier  cities  and  suburbs.  
  7. Technology Impact  –  Real  estate  professionals  are  using  online  home selling  platforms, apps, social  media, and smart  home  technology  to enhance effectiveness.  
  8. Mortgage Interest Rates Expected to  Settle  –  As  the  economy  continues  to grow,  experts  expect  interest  rates  to  rise  and  then  settle.  
  9. 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.
  10. Smart Home Technology  to  Attract Tenants  –  Property  managers  are offering  smart  home  technology in  rental  units  to  attract and  retain tenants.   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

One Comment Add yours

  1. I really liked all the brief points you have discussed here. It increases more readability and have more information rather than the long posts.

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