Top Real Estate Trend Predictions In 2023
2021 was a wild year for everyone! With so many things taking place around the country and pandemic-ridden people finally settling into the “new normal”, you might be wondering what holds for us in 2022. Recent real estate trend Predictions are a mix of positive and negative developments. For starters, property prices keep going up due to a variety of factors. The COVID-19 pandemic has also impacted this.
After observing the marketplace, experts have come up with real estate trend predictions for 2023. The latest real estate trend predict market prices for real estate to soar in the year to follow. Let’s take a look at major trend predictions for 2023 together:
1- Sales Trend In Real Estate Will Increase
2021 recorded high prices for homes which were great for sellers, but for buyers, not so much. Home prices soared sharply and in return, sales declined. However, 2023 is expected to be easy on buyers.
i- What 2023 Brings For Home Buyers:
According to experts, sales of existing homes are expected to rise to 6.6 per cent. This year will allow buyers more variety, less madness, and decelerated price growth. Mortgage rates are also expected to rise 3.6 per cent at the end of the year, which will result in the moderation of the increase in prices of homes. As price growth slows down and the construction of new homes paces up, demand will definitely increase, which will result in real estate sales.
2- Built-To-Lease Homes Trend Will Increase
With the boom in home prices recorded last year, sellers have been keen to sell more at higher prices, whereas buyers have bought fewer homes. Due to the soaring prices of properties, a greater number of people have opted for rental properties. Sellers have built properties keeping in mind the interests of tenants with the goal of renting them.
i- Why Rental Properties In Real Estate Have An Upward Trend
Due to affordability issues, the number of rental properties keeps booming. The total value of the US real estate market is $127 trillion out of which the rental property market enjoys nearly $36+ trillion in shares. A recently held Housing Vacancy survey showed the number of rental households to be booming, by more than 870,000 to a total of 44 million. According to the latest Housing Vacancy Survey, the number of renter households climbed by more than 870,000 over this period, to a total of 44 million. As for real estate dealers, pandemic uncertainty keeps investments at-risk high. They have preferred to retain existing tenants, handle cash flows, and manage existing labour.
3- Natural Destructive Events
We all observed the horrific California wildfires and the chaos they caused for everyone. This example teaches us that the profitability, desirability, and pricing of an area depends on natural disasters and occurrences. This caused a spike in the rates of home fire insurance for houses that were situated near trees having inflammable tendencies. Similarly, the increase in the appalling storms and hurricanes in the states of Louisiana, Florida, and Texas can endanger neighborhoods as they tend to be bumped by them.
4- Covid-19 Remains A Trend-Setter and Game-Changer
Covid-19 is not just a trend setter in real estate trend predictions; rather, it has changed the structure of the economy worldwide fundamentally since 2019. The uncertainty still prevails. Real estate and construction of homes require labor, whereas the pandemic has resulted in work-from-home and hybrid work structures, which has caused a fuss in demand. Could you have imagined two years back that markets would shut down, forcing everyone to stay home and work from there, putting small-scale businesses and other companies at deep risk? Just like that, there is room for any possibility.
5- Increase In the Reallocation Trend
As a trend setter, Covid-19 somehow pressed people to shift from the cities and purchase homes in suburban and rural areas. The reason for this is again, the soaring prices in cities. With offices providing work from home, people have taken advantage of shifting from urban areas to suburbs. These areas provide fewer house rates and rents.
6- Single-Family Housing Demand Leading to Shortage Trend:
People migrating to the suburbs caused an increased demand for single-family houses, recording the highest demand in 2020 in four years. Hence, the shortage of houses is recorded to be lowest in the last 40 years.
The migration from cities to suburbs is resulting in growing buyer demand for single-family homes.
7- Climate Change Causing a Trend in Real Estate
Every day we hear people advocating to save the planet. The crisis is real and there is a great chance for climate change to be causing a negative trend in the real estate sector. Drought and heat-tormented West; immense floods and wildfires around the globe are all signs of climate crises.
8- What Climate Crisis Entails For Real Estate?
The climate crisis directly affects the real estate industry as it has the largest involvement in greenhouse gases and global warming. The construction of buildings utilizes forty percent energy and gives out carbon emissions. This puts real estate investors and leaders in a place to play their role in minimizing the effects of climate change. While few investors advocate for it, others don’t put up much effort into it for the sake of higher returns.
9- Cities Having Potential Trends To Be Top Ranked
With people having the liberty of working remotely, they realized that meetings could be done from thousands of miles away instead of ten. This led to the popularization of cities that were once not inhabited. The southern and western regions are increasing with the number of people. This trend has caused an increase in the demand for homes and rental properties, which is an attractive opportunity for real estate investors.
i- The Top 10 Trending Cities With Increasing Population
According to Emerging Trends Survey, the following ten cities have been recorded as having upward trends in population.
5. Tampa/St. Petersburg
7. Dallas/Fort Worth
As the year 2023 prevails, we put our hopes for the betterment of the economy that benefits both the buyers and the sellers. According to past observations and trends based on them, we believe real estate sales to stride with the sales of 2021. Overall price appreciation will slow down, which will work best in the interests of home buyers. All trends summarized together lead towards the growth of the economy that can promote stable real estate trend predictions.
How Regentology Can Aid You:
Regentology can aid you best by providing you with solutions in the real estate industry by connecting you with professional leads and willing clients to smooth out your buying and selling transaction with the best of offers.
Read More Related Blogs :
1- Emerging Real Estate Trends