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Real estate is an ever-evolving industry. There are a multitude of factors impacting real estate and the direction it’s heading. Some of the trends shaping the future of real estate are technology integration, sustainable and eco-friendly construction, the work-from-home impact, and the increase of urbanization and mixed-use developments. Let’s explore these!
Technology Integration
With any consideration of the future, technology comes to mind. This is because technological advancements significantly shape the way we access information and improve productivity and functionality. Technology improvements are also revolutionizing the real estate world. Here are a few ways.
Improved Property Search
Undoubtedly, technology has and will continue to streamline the real estate property search process. It provides buyers with access to a wealth of information, interactive tools, and personalized assistance. This helps buyers find their dream homes more efficiently and effectively.
One way is through online listing platforms. The internet has a vast array of programs and websites where buyers can search for properties based on their preferences. These priorities include things like location, price range, size, and amenities. Additionally, the platforms often include detailed property descriptions, high-quality photos, virtual tours, and sometimes even 360-degree views. Buyers no longer have to spend significant amounts of time visiting many individual properties. The online platforms and websites help them virtually narrow down the properties they want to see in person, thus streamlining this part of the process.
Increased Data-Driven Analytics & Market Insights
Increased technological advancements also mean better analytics. Analytics give greater insight into market trends, property values, neighborhood statistics, and comparable sales. Buyers and real estate agents can use this valuable information to make more informed decisions. Furthermore, the data can help buyers, sellers, and realtors alike understand the dynamics of the market.
Smart Home Technology
Technology not only helps to navigate the real estate market, but also makes homes more productive and efficient. Smart home technology is a big real estate trend that is dominating the industry, and will only increase as more advancements are made. Door locks, televisions, thermostats, home monitors, cameras, lights, garage doors, and appliances are all being linked to a home automation system. Imagine being at work and being able to preheat your oven on your way home. Or perhaps you are away and want to adjust your lights, cameras, and thermostats. Smart home technology is at your service. These innovations enhance convenience, security, energy efficiency, and make homes more attractive to buyers.
Sustainable & Eco-Friendly Construction
Another of the trends shaping the future of real estate is sustainable and eco-friendly construction. As concerns about the environment rise, construction workers are listening. Builders and developers are incorporating energy-efficient features, eco-friendly materials, and sustainable design principles. This is to reduce environmental impact and meet the demand for environmentally conscious properties.
Energy-Efficiency
Sustainable buildings are designed to maximize energy-efficiency and reduce operational costs over the long term. Features such as high-performance insulation, energy-efficient windows, LED lighting and smart HVAC systems are being included in new construction homes and buildings. These help reduce energy consumption and lower utility bills for building occupants.
Eco-Friendly Materials
Builders are also focusing on using more eco-friendly materials during home construction. As more new homes and buildings are being built, you can expect to see an increased use of reclaimed, recycled, or sustainable wood, sheep’s wool, recycled steel, cork, bamboo, recycled plastic, and other eco-friendly materials.
Improved Indoor Air Quality
New construction is also prioritizing indoor air quality. Builders are increasingly using low-VOC paints, adhesives and finishes. Additionally, they are incorporating natural ventilation systems and air purification technologies. While new construction homes are prioritizing this, there are other simple ways you can improve the indoor air quality in your home. Check out my blog post “How to Freshen Up Your Indoor Air” for quick tips and tricks.
Work-From-Home Impact
During the Covid-19 pandemic, many employees moved to a remote work situation. Seeing the continued productivity despite being out of office, many companies have continued to allow employees to work from home. This movement is directly linked to a few real estate trends.
Shift in Housing Preferences
Remote work allows individuals greater flexibility in choosing where to live. Many people are opting to move away from expensive urban centers to suburban or rural areas with lower costs of living, larger homes, and access to outdoor amenities. There is an increased demand for properties in suburban and rural locations and a shift in the urban real estate markets.
Shift in Home Layout Preferences
With more people working from home, there is a growing demand for properties with dedicated office spaces and/or flexible layouts. Some home layouts that are preferred include bonus rooms, finished basements or detached structures that can be converted into home offices or remote workspaces. Additionally, open floorplan layouts are getting pushed aside for ones with more defined rooms and spaces.
Rise of the Second Home Market
Another real estate trend that is occurring is the rise of the second home market. Many remote workers are opting to purchase second homes in scenic locations or desirable destinations where they can work remotely while enjoying recreational activities and natural surroundings. This has led to an increased demand for vacation homes, resort properties and properties in rural or coastal areas.
Urbanization & Mixed-Use Developments
While many remote workers are seeking real estate in more rural and suburban areas, Millennials and Gen Z are trending toward urban centers. According to the Joint Center for Housing Studies of Harvard University, “Despite increasing suburbanization, millennials continue to occupy urban areas in high numbers…[and] Gen Z is now driving new rental demand and moving into urban areas.” There is an increased prioritization on public transportation, walkable neighborhoods and vibrant cultural amenities. As a result, the real estate industry is seeing an increase of communities that mix residential, commercial and recreational spaces. You can expect these types of developments to maintain their high demand.
Rise of Co-Living & Co-Working Spaces
In addition to the urbanization shift and increased mixed-use developments, another trend we are seeing is the increase of co-living and co-working spaces. Lack of affordability is unfortunately another trend we are seeing in real estate. This creates a shift in housing preferences and drives the demand for flexible, shared living arrangements over traditional rental apartments or single-family homes.
There is also an increase of co-working spaces. With the shift to remote work, many dedicated co-working spaces meet the growing demand for flexible work arrangements to support work-life balance and productivity.
Trends Shaping the Future of Real Estate
Technology integration, prioritizing sustainability, remote work and urbanization are all trends that are impacting the future of real estate. These trends will influence market dynamics, investment strategies and development priorities in the years to come.
