The real estate industry has undergone drastic changes in the past few years. Several risks follow property investment, therefore getting prepared for anything is in your best interest. You can get through the volatility of real estate and property management by learning as much about the market as possible.
The past few years have been especially difficult for real estate investors due to the pandemic crisis. Staying ahead of the game is essential to stand out against the competition in 2023. Learning more about the current market shifts can help you decide whether it is the right time to invest in real estate.
We will cover seven trends anticipated to dominate in the coming months, from high-tech innovations to Eco-Friendly Materials.
- Digital Marketing
Social media and digital marketing are not new for business owners in our age. However, social media marketing has become much more powerful and effective in the 2020s than they were in the 2010s.
The global lockdown caused by the pandemic led to the digital market dominating the world. Everyone stayed indoors for months and could only communicate through social media. People got used to the remote lifestyle and many employees continued working from home even after the lockdown was over.
Business owners learned that people spend the majority of their time on social media and therefore, digital marketing trends work better than any other. The real estate industry is no different. Virtual home tours and marketing properties via TikTok and Instagram have become very popular.
Property management companies offer virtual property tours to land good deals while also saving a lot of time. Digital house hunting is much more effective, less tiresome, and more affordable for buyers and renters. People prefer to conveniently weigh their options without leaving their homes in the modern world.
- Eco-friendly Materials
The pandemic pushed people to care more for the environment and their health. People have learned far more about the ecosystem and climate change in the 2020s than they did before. Many homebuyers are trying to find eco-friendly and sustainable households for their families.
Therefore, investors are better off purchasing and using eco-friendly products for their properties. The solar power system is one of the more popular eco-friendly options. It’s also more convenient for buyers as solar panels save a lot of energy.Bamboo building materials, such as flooring, can also help you decrease the number of carbon footprints.
- Suburbs Over Cities
The impact of the pandemic outbreak turned out to be gigantic. Not only did it affect the global economy, health, and business tactics, but it also changed lifestyles. Homeowners started choosing suburbs over cities.
Many people started to relocate to the quiet and affordable parts of their states due to multiple factors:
- Affordability – living in the suburbs is much cheaper than living in crowded parts of cities.
- Safety – families choose to live in protected and safe modern suburbs where crime rates are low and most of the population is familiar with each other.
- Family-friendliness – daycare systems, schools, parks, etc. are more convenient for parents in the suburbs where they can drive their children to school or let them go alone.
Therefore, when you are investing in real estate, it’s better to focus your energy and attention on quiet and safe locations. Homebuyers are more interested in suburbs lately. You can use this knowledge to your advantage in 2023.
- Single-Family Housing Demands
As most people have started to migrate to the suburbs from big cities, the demand for single-family homes has increased. Single-family housing shortage can help your investment provide a lot of profit.
Single young adults are looking for single-family properties in the suburbs. Many graduates are planning to become homeowners in the suburbs due to the low cost of living. Moreover, a remote working lifestyle is urging people to stay at home most of the time, therefore being a homeowner is more attractive now to single working people than ever.
- High-Tech Innovations
Smart home systems give homeowners a sense of safety, convenience, comfort, and control. Property investors need to focus more on using high-tech innovations to spruce up real estate.
Installing high-tech innovations such as security systems, cameras, and remotely controlled furniture can be a hustle. Therefore, many buyers prefer to buy properties with already montaged high-tech innovations.
These tools make it easier for homeowners to live. Doors, drapes, heating, conditioning, etc. can all be controlled remotely using technical devices. Therefore, buyers who are looking for luxurious living opportunities value smart homes.
- Unique Vacation Rentals
We spend most of our time at work and fitting into society’s standards. People like to let loose on vacations and use all of their break time on enjoying life and things they normally would not. Therefore, unique vacation rentals are more attractive to renters than ordinary homes.
Properties with pools, beautiful sceneries, treehouses, renovated vans, etc. are appreciated by free-spirited people who enjoy diverse holidays. Property managers grab the consumers’ attention by offering something original to light up a spark. The change of scenery and environment is often exactly what working people need on their vacation.
- Home Prices Continue to Rise
The demand for high-quality properties is increasing and so are the real estate prices. One of the most noticeable real estate trends in 2023 is the great rise in home prices. This is partially caused by the demand for single-family homes.
The median housing price in the US as of 2022 was $428,700. The housing prices increased by 30% from 2020 to 2022. The difference is not big in 2023.
Economists say that property prices will only increase in the future. However, investors are not backing off the market. Many buyers want to secure their assets before the median housing price gets even higher.