6 Most Recent Real Estate Trends in 2018
The real estate market has been evolving for the last few years, and this is expected to continue this year as well. As its evolution takes shape, there are trends that have already started emerging. It is expected that buyers will be more in control this year than ever before.
This is because of the fact that housing supply has already started catching up with the prevailing demand. As the year progresses, these are some of the real estate trends to watch out for.
1. Growth Of Co-Living Spaces
Co-living is expected to have a big impact on the current multi-family industry. This is because it will be changing in a bid to reflect the new demands and wants being put forward by renters. Amenities have, for the last few years, been responsible for defining commercial real estate developments. This year, it will be the need to have access to unique services and experiences that will heighten competition in this sector.
2. Increasing Popularity Of Short-Term Rentals
The short-term rental market is expected to experience a boom, which will translate into more increased earnings for single family and large property owners. The priorities will include occasionally renting out spare rooms for extra cash, and leasing out vacation homes at between three and five times the normal rates. This is due to increased access to both local and global communities.
3. Smaller Living
Mobile living and tiny apartments are expected to help bring a viable solution to the ever-increasing housing density in areas that are already overpopulated. You can expect to see more of this in big towns, which will, in turn, increase the operational income for existing apartment blocks. Although this may not have a very big impact this year, it will lay the groundwork for what is to be expected next year.
4. Fractional Investing
The last few years have seen crowd funding and peer-to-peer lending gain mainstream acceptance and recognition. As such, investors who are interested in diversifying their portfolios, or making passive investments in 2018, will be looking to make fractional investments in real estate.
Fractional ownership is expected to be the norm this year, as people take advantage of crowd funding to move away from sole property ownership.
5. Introduction Of Appraisal Legislation
Real estate will be one of the many industries that will be affected by the new tax bill. The bill is expected to restrict the entrance of new homeowners into this industry. If implemented, the 2018 appraisal management company regulations are likely to increase the costs of doing business, thereby impacting real estate transactions.
An increase in the costs of doing business means that the consumers have to spend more money, which is something many of them may not be willing to do.
6. Entry Of Millennial Buyers
Many millennials are looking forward to leaving their parent’s garages and basements to move into their own homes. Real estate agents will need to become proactive if they are to be the go-to choice for millennials.
Millennials are a unique generation when it comes to home ownership. They tend to have many options, like co-living with family and friends, investing in single family homes, or purchasing tiny homes and apartments especially in Newark, CA. For the realtors, this generation is expected to present them with a very big learning curve.