let’s talk: UPCOMING HOUSING TRENDS
I recently ready a fun article in FORBES about the up and coming housing trends and let’s face it – who does not want to be hip and in the know?!
So, as we do, let’s talk Real Estate, let’s talk UPCOMING HOUSING TRENDS…
The Forbes Real Estate Council came up with their top 15.
1. Increased demand for more livable space
Totally agree! People are spending more time than ever at home with no real end in sight on this lifestyle. As people try to create at home offices, classrooms, workout studios etc the need and desire for more space is inevitable.
2. A significant shift to agile workspaces
It is said that more agile, free flow work spaces can foster greater productivity and collaboration. What do you guys think? Do you work better in a free flow environment, or a more structured office space?
3. Buildings that enhance health & well being
On board with this! Pro-SELF CARE whether that means at home or at work. All about the easy access to gyms, calming spaces and ways to create a sense of peace.
4. More focus on outdoor amentities
YES YES YES especially in a time where it is encouraged to be outdoors while socializing, and in a time where most of spent months in our homes. An outdoor escape is a must.
5. More people migrating to the suburbs
DEFINITELY. NYC was hit with this the most. As people worked to get away from the crowds of the city during the pandemic, they learned they also do not necessarily have to live there to work anymore. There has been a huge shift from city to suburbia life – I absolutely hopped on this trend.
6.Growing demand for experienced agents
Fair! The real estate market is HOT and competitive right now so having a good agent on your side is important. But one thing I do not agree with here is that part-time agents will be a thing of the past. I know so many agents, myself included, that are realtors part time, and I think that is totally okay! I do it to try and help support our investing, as well as to help other investors out there.
7.Independent brokerages will disappear
Maybe not everywhere but the shift away from these is definitely in full swing. I am seeing this a ton with EXP Realty. Running a brokerage is EXPENSIVE for the smaller brokerages so we are seeing so many join our brokerage. EXP allows them to still run their teams independently but offers them the technical and financial support they need to operate. At the end of the day, many brokerages are switching over because the numbers make sense. Shoot me an email or text if you are interested in learning more about EXP!
8.Growing inflation rates
This is what they had to say;
“One trend that will impact all real estate markets over the next one to three years will be the Federal Reserves’ recent decision to allow the nation’s inflation rate to move above their benchmark of 2% for the foreseeable future. This shift in policy will artificially suppress interest rates on real estate debt, which in turn stabilizes and inflates existing asset prices as investors search for yield.” – Andrew Schena, Capital Equity Partners, LLC
9. Rising interest rates
There is speculation that banks will be able to conintue to lend at such low rates for much longer. Once rates increase, securing financing can become harder which will in turn cause home sales to slow down. What do you think? How soon will we see rates start to creep back up?
10. Heavier taxations for principal residents
This is what they had to say;
“Over the next one to three years, I predict that there will be heavier taxation for principal residences. There will likely be a slow and steady increase in the Canadian market due to low interest rates, immigration and more job opportunities.” – Morgan Browne, Oakwyn Realty Ltd.
11. Growing number of homeowners
We have definitely been seeing this over the past year. It goes hand in hand with the low interest rates, people ditching the city for the suburbs, and the want for outdoor amenities!
12. Increased number of defaults
This prediction could prove true based on the fact that there are more homeowners so the pure chance of a default happening is bigger, but it could also be driven by uncertain times where many have unforutnaltey lost their job.
13. Eviction issues
YES. There has been a moratorium for most of the pandemic and the courts are backed up with cases. When landlords are unable to evict non-paying tenants, they often look to sell just to get the property off their hands. Investors who are willing to take on the risk of a non-paying tenant will most likely be able to strike a good deal and buy at a good price.
14. Exchange of wealth between ownership
This talks about the need and opportunity for mutt-family development. There is a shortage of affordable housing already and with the low interest rates, developers and investors can afford to build and buy more of these to help meet demand.
15. Rise of alternative solutions to security deposits
Many Americans live paycheck to paycheck and the high price of security deposits can be expensive. Reichen Kuhl at LeaseLock predicts that we will see a shift away from these, and more towards alternative solutions. In the past we talked about Surety Bonds, because those can sometimes be a pain to deal with as the landlord. Do you all have any recommendations for a solution to a security deposit? I honestly have no idea what I would feel comfortable with replacement wise.
What do you guys think?! Do you agree with these trends?! Do you have any other trends you think we might see?!
|Happy Wednesday! & Stay Healthy!|
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