What do you think will be the most prominent 2018 real estate trends?
Well we are now in the second week of 2018, now is time to anticipate how the 2018 real estate trends might affect your business. Doing so will be advantageous in devising a competitive strategy for the year. We will look as some of the most prominent real estate trends of 2018 and discuss how they can affect you.
Millennials make up the largest proportion of homebuyers, a majority of which are buying properties for the very first time. According to Realtor.com, this generation could make up as much as 43 percent of the buyer’s market by the end of 2018. Moving into their mid-20’s and 30’s, millennials are beginning to experience some income growth and are able to take on larger mortgages.
Because home prices have continued to rise, exacerbated by the shortage in affordable homes for sale, Millennials are increasingly moving to suburban areas. As they come into the age of forming households and having children, more and more of the nation’s largest cohort of homebuyers is looking to the suburbs and secondary markets for affordability and quality of life. According to the Census Bureau, millennials are roughly one-fourth more likely to move to the suburbs.
Investors would be foolish to ignore the consumer segment of homeowners who re-enter the housing market after foreclosure. Anyone who is forced into a foreclosure must wait seven years before they are able to purchase properties again. This year, this segment of potential homebuyers will be too significant to disregard. When the housing market crashed, thus catalyzing the Great Recession of 2007-2009, over 10 million Americans were forced into foreclosure. According to the National Center for Policy Analysis, roughly 1.5 million Americans will become eligible to re-enter the housing market in the next year.
Smart Home Technology
It should be no secret by now that millennials, are at the forefront of the home buying market. A clever entrepreneur will develop an understanding of these potential buyers’ preferences and outfit properties in such a way that caters to each generation’s consumer preferences. Smart home technology has already created a buzz in the housing market and rises to the top ranks of 2018 real estate trends.
Although it is virtually impossible to predict 2018 real estate trends with absolute certainty, they are nonetheless helpful in anticipating likely shifts in the market. Investors who strive to get an in-depth understanding of the generational consumer segments, as well as how to cater to the economic context, consumer behavior and preferences of each unique generation will be sure to get a leg up over competitors.