Looking ahead to the next year, experts are predicting a number of interesting trends within the real estate industry. Here is a look at just a few.
A Shift in Focus
For those who are looking for investments, mid-priced single-family homes are becoming an increasingly popular option. This is at least partially due to the fact that investors are becoming more defensive and conservative with their investments. Not only are these homes relatively affordable for investors, but no segment of the housing market has a greater number of potential buyers. Urban row houses, tract housing, transit-oriented development, affordable mid-market homes, starter homes and affordable rental units for young adults are likely to be viewed as great investment opportunities in the coming year.
Office Design Takes on a New Look
Office designs are likely to continue to morph into more mixed workspaces that offer a great location combined with an environment for success. A growing number of firms what curated, configured office spaces that help to boost productivity while creating an environment for innovation. Flexibility, smart office space and green design will be particularly popular in 2018.
Meeting the Needs of Baby Boomers
Many Baby Boomers are still experiencing the fallout from the Great Recession, with a 2016 survey finding that 37 percent of boomers have less than $50,000 in savings. Therefore, while some will be seeking out properties at the high end of the market in support of their desire to live in an urban area and to maintain an active lifestyle, others will be looking for affordable housing options. As such, many real estate experts believe this to be one of the most promising residential sectors for the New Year. In addition to helping boomers find new places to live, real estate professionals will be needed to help them sell their large homes that frequently do not contain the amenities that Millennials desire.
Secondary Markets Take the Lead
Secondary markets in the United States have outpaced primary cities, leading some analysts to believe there is more staying power in these markets than there has been in the past. This is at least partially due to the fact that investors are better educated, but also has much to do with the fact that secondary markets have not become overbuilt and the growth in these cities appears to be sustainable and long-lasting. While secondary markets lagged behind in terms of recovering from the Great Recession, it now appears to be poised for growth and continued appreciation. As such, now is a good time to invest in these markets.
Despite the increased interested in secondary markets, a recent report listing the hottest markets for 2018 still included Boston in the top ten. In fact, Boston and Los Angeles were the only primary markets to remain in the top ten. Other primary markets experienced a significant drop, such as San Francisco listed at 27 and Manhattan listed at 46.