Latest Trends in the Real Estate Impacting Growth of the Sector
Real estate is dynamic with new trends emerging each year. The year 2020 has seen buyers’ preferences evolve with millennials (people born between 1981 and 1996) soaring in the list of new homeowners. This is just one of the latest trends in the real estate market.
The Rise of Millennials
Millennials are becoming a dominant force in the real estate market and represent the largest group of new homeowners at 37% according to the National Association of Realtors. The online business has brought about a large population of high-net-worth millennials. They managed to rise above the last major recession of 2008 and made a significant impact on the market.
Millennials have outnumbered baby boomers and are even more fiscally conscious. They prefer luxury condos since they have fewer children. They do not prefer the McMansion-style homes that their baby boomer parents own.
Luxury condos offer millennials an ideal space to cater to their lifestyles that may include traveling, socializing on rooftops, and proximity to nightlife and entertainment. Luxury homes are being upgraded into bite-sized pieces to make them more appealing to millennials.
Need for Healthier Lifestyles
Finding healthy homes has become a new trend in 2020. New home buyers are looking for properties that have access to facilities such as gyms, yoga studios, nature trails, and walkable areas.
Optimal health has become a priority for many homeowners, especially people with pre-existing health conditions. In light of an epidemic outbreak, homeowners are looking to upgrade their homes to offer more protection against germs and viruses.
Technology is changing rapidly with new inventions and innovations almost every day. Tech enthusiasts are looking to buy houses that have embraced modern technology. New features include smart home technologies, apps, and online selling platforms.
High-tech companies are collaborating with real estate giants to build homes that provide for this emerging trend in the sector. These technological advancements focus on improving home comfort, accessibility, and security and on simplifying transaction processes.
The real estate sector is also integrating AI into building designs, organization, and management. This new trend helps in urban planning and other areas in the industry. Homeowners with older homes are upgrading to modern features and are adapting to the latest technology in the market.
Millennials who have successful online careers are also upgrading their homes to be more suitable to their job requirements. Other upgrades include setting up a home office, adding energy-saving appliances, integrating gate technology, and using USB chargers.
Extreme weather patterns are influencing more potential home buyers about where and what type of homes to buy. Homeowners living in harsh conditions upgrade into disaster-resistant home improvements. Young couples in particular are anxious about how climate change will affect their children’s quality of life. Sustainability is a new trend that is influencing people’s choices about buying homes and making upgrades.
Trends in the real estate market make it difficult to predict the future. Buyers' preferences are constantly changing and evolving. The year 2020 has also seen the rise of millennials owning homes. Other people are upgrading due to changes in lifestyles, aesthetic purposes, new technology, health, or even climate reasons. These new trends lead to the growth of the real estate sector and attract more buyers and investors.