Due to the global pandemic, some unusual real estate trends have emerged since 2020. Families locked in quarantine, crave more spacious housing, unemployed people want roommates to share houses, and demand for commercial places is going down. Now, if you are going to keep up with the changing trends, which ones are the must-knows for you? Here is the list of the top 5 late 2021 trends in real estate that you need to know:
1. Demand for public open spaces increased
Due to pandemic restrictions, most of the buying and selling have shifted to online mediums. Thus, consumers and sellers have transitioned to online shopping as more convenient rather than storefront retail. Previously shopping malls and boutiques were a place to roam around. Now, people want more spacious open public spaces like indoor parks, booth-style arcades, etc. So, the demand for developing infrastructures for public open spaces has increased.
2. Growing Suburban housing
Being stuck in cramped city apartments, many people realized they do not want to keep up with the fast-paced city lives. However, shifting to the countryside is not an option either due to the absence of facilities compared to the city's standard. The middle ground of this problem is living in suburban houses. There is a rise in suburban housing demand because city residents are opting for residing in the suburbs. It is more common for families to move to the suburbs to decrease the living cost.
3. Effects of the pandemic in housing affordability
Thousands of people have lost their jobs and homes due to the effects of COVID. Housing prices are rising, and rents are frequently increasing. Inflation, increased interest rates, and unemployment are worsening housing affordability. With the increasing population in cities and suburbs, housing prices will continue to grow.
4. Industrial and distribution prospects are ideal for investment
With the transition to online business, the demand for warehouse spaces is increasing. The companies need more distribution centers for delivering products. Thus, investing in warehouses and distribution centers is a great option to meet the rising significant property demand.
5. Emerging demand for single-family subsectors
In the real estate market, the highest ROI potential is single-family rentals. Investors have been interested in investing in this sector since the pandemic. Currently, single families are increasing as families are moving and splitting to shift in minimalistic homes.
6. Increasing demand for vacation homes
Among high-income families, the prospects of purchasing a vacation home have increased. A vacation home provides privacy and a secure option than opting for regular hotels. For wealthy families, owning a vacation home has become the best property investment option.
Conclusion
Post pandemic housing conditions can be quite unpredictable. COVID-19 has impacted and influenced the real estate market, and it will continue to influence the housing demands. With increased interest rates, higher demand for affordable housing, and changing housing inventory conditions, it is challenging to keep pace with all the factors.
