One of the most popular industries in today’s world is real estate. While many people continue to debate the future of the field, it is important to keep up to date with the latest trends as the industry has greatly changed over the years. With many more competitors and the growth of technology, it is important to keep up with the trends for the future. Here is a look at trends in real estate that are important to keep up with for the future.
- Rent
Real estate firms have been around for a long time. According to the Atlanta Agent, 48% of real estate firms have been around for more than 15 years. Many millennials found that they simply can’t afford to purchase housing, so they would rather rent. Other studies have shown that millennials would rather rent housing to “live in the moment” and spend money on experiences, such as travel, instead of buying homes. Through this, revenue in the housing market is expanding because the cost of living is going up. Therefore many people have no choice but to spend month-to-month money on rent. With millennials being the largest generation living today, it is important for real estate firms to shift their perception of buying trends and focus on the way millennials are approaching real estate.
- Buy
Of those who can afford to purchase housing, many are seeing the trends in the increase number of rentals to invest in real estate. The growing population in the world has caused a demand for not only housing, but also vacation rentals. Some studies found that millennials would rather rent than buy housing, creating a revenue of over $300 billion dollars by 2025. This creates a lot of revenue for companies such as AirBnB and independently owned housing businesses who rent out the properties. Many people decide to rent out their homes instead of selling them, creating a demand for more housing for those looking to buy.
Since millennials are placing less importance on owning property, semi-burbs are sprouting up that provide the convenience of residence without all of the property and expenses
- Semi-burbs
According to consumer reports, many millennials are interested in living in enclosed suburbs that offer a community, while still having a sense of city-feel. These developments are much more affordable than buying a single-home property, and have become increasingly popular amongst rural communities. Studies have shown that millennials aren’t spending enough money on “stuff” including space and property. The older generation also relies on a sense of community to help with their needs and life changes as they grow older.
- Affordable Housing
Many buyers are hoping to help the community through their housing investments. The United States is in a housing crisis, and according to the U.S. Department of Housing and Urban Development, families that pay more than 30% of their income for housing are considered cost burdened. As rent increases, paychecks don’t, therefore people are having problems paying their other bills as well.
- Mortgages
Many buy assistance programs and local nonprofits are working together with the government to help potential buyers put a downpayment on their homes. Most people find that the hardest part about buying a home is not the monthly payment, but the down payment due at signing. This is why many people consider buying a home unaffordable. This is allowing many people to buy homes and create new ones for others.
- Technology
As technology continues to increase in all industries, real estate is one of the most rapid. Many people are able to buy homes without even looking at them in person. Documents can be signed on the internet, and transactions overall are a lot faster. People are not only able to look up homes on sites such as ZIllow and Trulia, but are also able to buy homes through online agents, such as Ten-X. For agents, this means keeping up with the latest social media and technology trends to keep up with business.
As companies grow, they require more area for office space, increasing their footprint.
- Business
As businesses increase, so does office footprint. The employment rate has been rapidly increasing every years, allowing more businesses to expand their spaces and buy/build new buildings. This trend has allowed the real estate industry to grow as well. As more businesses are hiring, and people are getting paychecks, there is a sense of optimism and more opportunity for buying/renting property.
- Environmental Impacts
According to the World Economic Forum, the real estate industry “uses over 40% of global energy annually,” and “20% of global greenhouse gas emissions come from buildings, and are expected to increase building CO2 emissions by 2030.” The real estate industry has been working at its hardest peak in taking a stand against global warming and environmental impacts.
- Network
Most real estate firms do not offer benefits such as health insurance, savings plans, liability insurance, and sick/vacation days. Most are also paid on a 100% commision basis. Because agents mainly gain their clients through referrals and social media, it is important for them to network and establish as many relationships as possible in order to be successful in their fields. This trend is allowing more agents to work on their own time and schedules, while keeping up with the latest networking and social media trends.
- Expectations
Although the cost of living costs has increased, there is still reason to be optimistic. While more businesses are expanding and people are getting jobs, they are also able to spend money on things such as property, vacation homes, and travel. There will always be a need for housing, but it’s important to keep up with the latest trends, such as millennial spending power, cost of living costs, and rural developments.