The sun belt’s popularity continues to riseĪs Americans shift out of big cities, one destination they are moving to is the Sun Belt. Such as the increasing popularity of the Sun Belt, rising median home prices, and an overall housing shortage. The shift from cities to suburbs is also driving some of the other real estate trends on this list. While the predominant feature of “ middle neighborhoods” is the single-family home, these areas also retain some of the conveniences of a big city, such as multifamily housing options, good public transportation, high walkability scores, shopping, and restaurants.Īccording to Parolek, “middle neighborhoods” are difficult to construct from a regulations perspective, but perhaps this will start to change in the future as demand for such areas increases. Some who are moving out of big cities are looking for suburbs that retain some of the big city feel, areas that urban planner, Daniel Parolek, refers to as “middle neighborhoods”. Internet searches for "eviction" increased by 41% in the last 15 years, in part highlighting the concerns of lower-income homeowners and renters during the COVID-19 pandemic. Last but not least, the suburbs are an attractive destination due to lower taxes and cheaper housing and rent prices. Those who have lost their jobs and can’t afford big city prices anymore are moving in search of more affordable housing options. While the wealthy are relocating by choice.
Those who cannot afford to stay are moving out of necessity. The two underlying reasons for the shift are necessity and choice. Many industry experts predict that the pandemic-fueled shift to the suburbs will remain through 2025. The biggest metro areas, like New York, San Francisco, and Washington, DC, are likely to rebound once the US is firmly on the other side of the pandemic.īut the trend of opting out of big city living may persist for the next 3-5 years. The COVID-19 pandemic has fueled migration from major cities to the suburbs. Overall, searches for "Nextdoor", the social networking website for neighbors, have increased 186% in 10 years. Websites like Nextdoor allow residents of a particular area to stay in touch with other locals and keep up with neighborhood events. Millennials, who are notorious for their reliance on social media, are also turning to technology to learn more about their new neighborhoods. Online searches for "Better Mortgage", an online mortgage lender, shot up 46% over the last 5 years. Getting a mortgage can be done online now too. The home tour is not the only aspect of home buying that is going digital. Zillow remains a popular online real estate database, as evidenced by rising searches for "Zillow" over the past 10 years (51%). Zillow and some similar companies also provide 3D home tour options. Online real estate companies like Zillow, allowed home sellers to browse listings, get in touch with real estate agents, and research mortgage options during the pandemic. Online searches for "virtual staging", which were on the rise pre-pandemic, shot up in 2020, though the demand will likely decline somewhat after the pandemic.
Searches for "virtual staging" are up 23% over the past 5 years.
Many were able to do virtually tour property due to virtual capabilities, such as: The pandemic accelerated digitization across all sectors.Īnd the real estate market is no exception.ĭue to the pandemic and the competitive housing market in 2020, some buyers purchased their homes without stepping foot inside first. Searches for "digital transformation" are up 223% over the last 5 years. But was accelerated by the COVID-19 pandemic.īut there are several other important changes in the real estate space to keep an eye on over the next 18-24 months.
#One key real estate drivers
One of the key underlying drivers for these trends is a relocation from big cities to the suburbs - a development that was occurring before 2020. This report will examine the top seven trends set to impact the real estate industry in 2023 and beyond.
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