Real estate has been through so many changes over the past 10 years and there are more to come. If we take a good look at how our population is aging and changing you can easily forecast some changes ahead. In this two-part series we will look at the top 10 changes and trends the real estate industry will experience in the next few years to come. These are the second five issues that will face real estate this year and beyond:
- TINY HOMES AND SMALLER HOMES ARE TOP CHOICE FOR BUYERS – Baby Boomers and Millennial buyers dominate the real estate market. They are buying more homes than any of the other buying groups and they are driving the choices for types of homes in demand. Smaller homes and tiny homes are a hot ticket item. Millennials and Baby Boomers are excited about investing in homes that are more useable and versatile in lieu of being larger. Homes that have well-organized cabinet and storage space are in hot demand for both of these generations and smart builders are opting to build smarter homes rather than larger homes.
- BUILDERS FORCED TO CUT CORNERS – Don’t be surprised to go into a new home model home and find certain things missing in the home. With the rising cost of labor and land builders are being forced to analyze and trim their expenses. You may find new homes without fancy closet organizers, top-end appliances, and may also choose to not include the landscaping and fencing. They may also scale back on cabinet quantity and quality. Make sure you carefully inspect what you are selling and what your client is buying.
- DENISIFICATION BECOMES HOT REAL ESTATE TREND – Due to strong demand, house prices have steadily risen in most major cities on the West Coast of the United States. The cost of building has also gone up dramatically due to the shortage of qualified labor and the rising cost of building materials. This has forced builders and city planners to look at urban density and to allow more densification. With the rising cost of real estate densification is here to stay.
- VACATION HOMES BECOMES POPULAR REAL ESTATE CHOICE– The Canadian dollar has begun to gain power and many Canadians are opting to purchase real estate in the United States. There is also high interest by Baby Boomers to buy second homes and vacation rental homes as real estate investments.
- PASSING OF WEALTH CAUSES FURTHER DEMAND IN REAL ESTATE – The Silent Generation (born 1925-1945) is passing their wealth onto their Baby Boomer children (born 1946-1964) who are then using the funds to pay off their existing primary residence mortgage or they are selling their home and buying another home. They are also investing in rental properties and second homes. This is creating further demand in the real estate market and it is scheduled to continue for the next five years.
Real Estate is active and strong and the next 24 months will surely keep real estate agents very busy.