From co-living to smaller homes, here’s what will drive the real estate market in 2018
As technology advances, the market shifts and new generations become home buyers, real estate behaviors change and evolve, too. A new year means new real estate trends to watch for, whether you’re buying or selling. The real estate market is always fluctuating, so these trends may be fleeting, or they could last all year. While these aren’t strict guidelines, keeping an eye out for 2018 trends will put you in a more informed position when entering the market, which is always a good thing.
Co-Living and Community-Driven Spaces
Co-living has a broad definition, but is essentially a housing model where people live together and create a community within one home. It’s like a group home, but nicer, and developers are getting involved by building spaces with luxury common room amenities, or by turning office spaces into housing. Millennials, who are marrying later, are drawn to the idea of “family dinners” and shared workspaces. Among younger generations there’s a desire for unique experiences, which co-living can provide, unlike traditional housing: so watch as community-driven residential spaces make their mark on the real estate industry this year.
Smart Home Automation
In 2017, devices like Amazon Echo and Google Home became popular, and in 2018 reliance on tech in the home is expected to increase. From lighting and automatic shades to more serious issues like security, automation is becoming more affordable for homeowners. In 2013 the global home automation and security market was worth $5.77 billion. That number is expected to rise to $12.8 billion by 2020. Get ready for automation to be an oft-cited plus if you’re buying. If you’re selling, consider whether it’s worth setting up to make your home stand out.
Generation Z’s Emergence
Generation Z, those born in 1995 and later, has officially entered the workforce. There are expected to be 2.56 billion Generation Z individuals around the world by 2020, which means they have lots of influence over industries. While millennials graduated during downtimes for the economy, Generation Z has fared better, meaning they’ll earn higher wages earlier in life. Meanwhile, millennials are also finally starting to see wages grow. As these groups enter their 20s and 30s, expect them to start buying homes.
Equalizing Supply & Demand
There’s been a shortage of homes for sale over the last few years, but according to the economics team at realtor.com, that will change in 2018, probably around fall. With more homes on the market, demand will catch up. Markets like Boston, Detroit, and Nashville will likely recover first, but more construction across the country will mean an increase overall.
Where construction isn’t possible, like in dense or overpopulated areas, tiny homes will be all the rage. Nathaniel Kunes of AppFolio Inc. says this trend is expected to become the norm in big cities, and will have an impact over the next decade. Smaller living spaces are popular among minimalists and can be a good way to make income on existing apartments.
While trends change throughout the year, these five are likely to have staying power. Taking them into account as you enter the market will put you ahead, but your biggest advantage lies in having an experienced team by your side that will prioritize your interests and your needs. Contact Anselmo Lindberg and Associates today to learn how we put decades of real estate expertise to work for you.