Written By: Jacquelyn Annete García Vadnais
There have been many shifts in the real estate market in 2020 due to the Covid-19 Pandemic and shift in wealth that is currently occurring in the United States economy. Both buyers and sellers should be aware of these shifts in order to be able to make the best possible decisions as 2020 ends and the Covid-19 Pandemic continues. In order to learn more about the most recent trends in the real estate market, review the information below:
Important Real Estate Trends to Consider
Increased Demand for Square Footage
Since many individuals have had to quarantine, there has been a demand to have more square footage. This trend will continue as more individuals are required to stay home or more employers decide to invest heavily in remote work options. As individuals stay home more, the size of their house will gain more importance to them, which could cause an increase in pricing for larger square footage homes and apartments.
Home Office Considerations
Many individuals have had to instantaneously make a home office when they had no plans to do so. For buyers that are looking to purchase a new property, they may be looking carefully at adding a bedroom in order to be able to have a home office that is separate from their family for working remotely. This has the potential to also increase the demand for homes and apartments that have more bedrooms and overall space.
Outdoor Amenities
One aspect that the pandemic has greatly changed is the desire to spend time outdoors. For prospective buyers, outdoor amenities will be a top priority when purchasing a new home or apartment. For individuals that are leaving apartments, they may be interested in single-family homes that have backyards with space and even a pool. The trend is leaning towards not having common areas where restrictions may be put in place due to the Covid-19 Pandemic.
Influx of Buyers in Suburbs
As cities have increased crime and shutdowns, more individuals are moving to the suburbs to have more space and a quieter pace of life. Since the commute is no longer as much of an issue due to remote working, the suburbs have become more appealing for families and single individuals alike.
Interest Rates
There are mixed opinions about how interest rates may shift. The reason for this is that they are at historic lows and skeptics wonder how long the American economy can sustain such low rates. On the other hand, others view interest rates as something that will remain at the status quo or even get lower in the months to come. The reason for this uncertainty is coming from the Covid-19 Pandemic and how long it may last.
Alternatives to Security Deposits
Security deposits have been a historic barrier for many renters to be able to afford nicer apartments. It can be challenging for an individual to save enough capital to be able to afford the security deposit along with several months of rent. A shifting trend has been seen to lower security deposits to a more manageable amount that is substantial less than a month’s rent. This trend may be able to help many prospective renters have fewer barriers to renting their desired apartments across the country.
Increase of Millennial Buyers
In spite of the pandemic, there has been a shift of wealth with the increasing amount of millennial buyers that are able to afford homes. What this means for real estate brokers and sellers is that there needs to be an increased digital investment in listings they are attempting to rent or sell. Millennial buyers tend to look online when searching for their ideal place to live. Real estate brokers and sellers who invest in online websites along with social media will position themselves well to reach more prospective millennial real estate buyers.
Second Tier Cities Becoming More Popular
Recently, second tier cities have become more popular as individuals search for more affordable housing options. As remote working grows even after the pandemic, there may be more options as to which cities individuals can live in. This will help more prospective buyers be able to afford buying a single family home rather than living in an apartment in a larger city as a renter. Another aspect is that more companies may bring offices to secondary cities to save on rent fees as well. Both shifts in the real estate market have the potential to grow the economies of secondary cities in the short and long-term.
Importance of Health & Well-Being
After the Covid-19 Pandemic, there has been an increased interest in health and well being related to real estate. Prospective renters may be looking for an apartment building that has more health amenities or outdoor spaces to increase their quality of life. A prospective homebuyer may also be looking for real estate with increased light or outdoor space to improve their clarity of mind. Health and wellness has become a topic of great interest during the pandemic during the many lockdowns and will likely continue to be a priority as the pandemic ends and in the years to come.
Final Remarks
2020 has undoubtedly greatly shifted the real estate market in the United States. Between the Covid-19 Pandemic and the shift in wealth toward millennial buyers, the real estate market will be changing for many years to come. The key for prospective home buyers is to consider the low interest rates that will enable them to pay off their mortgage sooner. In addition, sellers who have desirable properties in suburbs should consider selling while the market has great interest in leaving the larger cities. Real estate agents should also make efforts to reach more millennial buyers who have had an increase in wealth and who are able to adapt to the remote working trend with ease. 2020 has laid out many trends in the American real estate market that will cause a shift that will last more many years as more companies go to the remote working model and the wealth continues to shift. It will be fascinating to see what changes the real estate market sees as the Covid-19 Pandemic ends and a sense of normalcy returns.
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Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
There have been many shifts in the real estate market in 2020 due to the Covid-19 Pandemic and shift in wealth that is currently occurring in the United States economy. Both buyers and sellers should be aware of these shifts in order to be able to make the best possible decisions as 2020 ends and the Covid-19 Pandemic continues. In order to learn more about the most recent trends in the real estate market, review the information below:
Important Real Estate Trends to Consider
Increased Demand for Square Footage
Since many individuals have had to quarantine, there has been a demand to have more square footage. This trend will continue as more individuals are required to stay home or more employers decide to invest heavily in remote work options. As individuals stay home more, the size of their house will gain more importance to them, which could cause an increase in pricing for larger square footage homes and apartments.
Home Office Considerations
Many individuals have had to instantaneously make a home office when they had no plans to do so. For buyers that are looking to purchase a new property, they may be looking carefully at adding a bedroom in order to be able to have a home office that is separate from their family for working remotely. This has the potential to also increase the demand for homes and apartments that have more bedrooms and overall space.
Outdoor Amenities
One aspect that the pandemic has greatly changed is the desire to spend time outdoors. For prospective buyers, outdoor amenities will be a top priority when purchasing a new home or apartment. For individuals that are leaving apartments, they may be interested in single-family homes that have backyards with space and even a pool. The trend is leaning towards not having common areas where restrictions may be put in place due to the Covid-19 Pandemic.
Influx of Buyers in Suburbs
As cities have increased crime and shutdowns, more individuals are moving to the suburbs to have more space and a quieter pace of life. Since the commute is no longer as much of an issue due to remote working, the suburbs have become more appealing for families and single individuals alike.
Interest Rates
There are mixed opinions about how interest rates may shift. The reason for this is that they are at historic lows and skeptics wonder how long the American economy can sustain such low rates. On the other hand, others view interest rates as something that will remain at the status quo or even get lower in the months to come. The reason for this uncertainty is coming from the Covid-19 Pandemic and how long it may last.
Alternatives to Security Deposits
Security deposits have been a historic barrier for many renters to be able to afford nicer apartments. It can be challenging for an individual to save enough capital to be able to afford the security deposit along with several months of rent. A shifting trend has been seen to lower security deposits to a more manageable amount that is substantial less than a month’s rent. This trend may be able to help many prospective renters have fewer barriers to renting their desired apartments across the country.
Increase of Millennial Buyers
In spite of the pandemic, there has been a shift of wealth with the increasing amount of millennial buyers that are able to afford homes. What this means for real estate brokers and sellers is that there needs to be an increased digital investment in listings they are attempting to rent or sell. Millennial buyers tend to look online when searching for their ideal place to live. Real estate brokers and sellers who invest in online websites along with social media will position themselves well to reach more prospective millennial real estate buyers.
Second Tier Cities Becoming More Popular
Recently, second tier cities have become more popular as individuals search for more affordable housing options. As remote working grows even after the pandemic, there may be more options as to which cities individuals can live in. This will help more prospective buyers be able to afford buying a single family home rather than living in an apartment in a larger city as a renter. Another aspect is that more companies may bring offices to secondary cities to save on rent fees as well. Both shifts in the real estate market have the potential to grow the economies of secondary cities in the short and long-term.
Importance of Health & Well-Being
After the Covid-19 Pandemic, there has been an increased interest in health and well being related to real estate. Prospective renters may be looking for an apartment building that has more health amenities or outdoor spaces to increase their quality of life. A prospective homebuyer may also be looking for real estate with increased light or outdoor space to improve their clarity of mind. Health and wellness has become a topic of great interest during the pandemic during the many lockdowns and will likely continue to be a priority as the pandemic ends and in the years to come.
Final Remarks
2020 has undoubtedly greatly shifted the real estate market in the United States. Between the Covid-19 Pandemic and the shift in wealth toward millennial buyers, the real estate market will be changing for many years to come. The key for prospective home buyers is to consider the low interest rates that will enable them to pay off their mortgage sooner. In addition, sellers who have desirable properties in suburbs should consider selling while the market has great interest in leaving the larger cities. Real estate agents should also make efforts to reach more millennial buyers who have had an increase in wealth and who are able to adapt to the remote working trend with ease. 2020 has laid out many trends in the American real estate market that will cause a shift that will last more many years as more companies go to the remote working model and the wealth continues to shift. It will be fascinating to see what changes the real estate market sees as the Covid-19 Pandemic ends and a sense of normalcy returns.
--
Jacquelyn Annete Garcia Vadnais is an Investment Consultant and field expert blogger for Barracuda Consulting.
Jacquelyn has a JD/ MBA from Suffolk University, an LL.M in International Law from the University of Miami, and a B.A. from the George Washington University in International Affairs with a Concentration in International Politics. Jacquelyn speaks English, Spanish, French, and Portuguese and has lived in ten countries. Jacquelyn has done work for firms such as Boston Consulting Group and has worked with firms based in over ten countries in the fields of Real Estate, International Law, Expat Living, International Business, Forex Trading, and Travel. She has also volunteered her time and expertise at the Victims Rights Law Center based in Boston, MA.
Please leave your comments below. If you would like to subscribe to our newsletter, click here: https://tinyletter.com/barracuda-consulting. To purchase a full real estate report, or to access a complete suite of investment advisory services please contact us: https://www.barracuda-consulting.net/contact.
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