2022 has witnessed many changes in the real estate industry. The trend of shifting from cities to suburbs is one of the key reasons behind these changes. The widespread pandemic in 2020 accelerated this trend. However, certain other changes in the real estate industry will develop further in the coming years.
- Digital house hunting
Digitization has become widespread with COVID-19. The real estate industry is experiencing a digital revolution. 2020 was a competitive year for the industry, and the pandemic made it difficult for people to go and search for people. Many real estate businesses in 2020 occurred digitally, without even stepping into the houses. Virtual staging, drone videos, and 3D tours made virtual tours appealing to buyers. The virtual staging was gaining attention even before the pandemic. However, its popularity shot up during the pandemic. During this time, many online real estate firms such as Zillow offered home sellers to browse catalogs, find real estate owners, and research different mortgage options. Social media also helped people to learn about the neighborhoods.
- The shift from cities to suburbs
As mentioned earlier, COVID-19 quickened the process of shifting from big cities to small suburbs. Major metro cities like Washington. D.C., San Francisco, New York, etc., are experiencing this big shift. Experts predict that this shift will last for 3-5 years more. The expense of living in these big cities is forcing many people to move out. However, some wealthy people opt for the suburbs by choice. People who lost their jobs during the pandemic are looking for affordable houses in the suburbs. The lower house prices and the cheap renting options along with low taxes are attractive features of the suburbs.
- The popularity of Sun Belt
The Sun Belt is a favorite destination for many Americans who move out of big cities. With the increase in pandemics, the popularity of the Sun Belt accelerated further. This trend will continue in the coming years too. Studies show that about 75% of the growth in the population of the countries happens in the Sun Belt States. Affordable housing options and low taxes are attracting both retired people as well as young professionals to these regions. They are also more spacious than the big cities. The growing demand for the Sun Belt states has bolstered the development of real estate businesses in the region.
- Demand for Single-family housing
As the migration of people from cities to the local suburbs is increasing, the demand for single-family housing is also rising. Home sales are expected to rise by 10% in the coming years. The demand for single-family houses was at its highest in 2020 in the past few years. Low-interest rates, good for social distancing and quarantine, and clear housing trends were the major reasons for the rising demand for single-family houses. Millennials are opting for suburbs for their first home. Even though this trend will continue for the next few years, it is unpredictable whether it will last long. However, the new constructions are based on the current trend.