The biggest trends of 2016 were the low interest rates, reduced inventories and a surge of millennials bursting onto the housing market. But what can we expect to see in real estate in 2017? Here’s a few of the major themes likely to impact the industry over the next 12 months.
The rise of the ‘surban’ home:
It’s often been said the suburbs are losing popularity, but that’s simply not true according to an article in Market Watch. It cites John Burns Consulting as saying almost 80 percent of residential growth will take place in suburban communities in the next decade. However, suburbs are more and more beginning to incorporate urban amenities like pedestrian-friendly shopping areas, general walkability, and entertainment options. This new type of suburbia also has a new name: Surban.
"These developments are more than simply mixed-use," says Danielle Leach, a senior consultant at John Burns Real Estate Consulting in Chicago. "Surban living is becoming a new way of life for many: where the blend of urban and suburban living provides the best of both worlds."
The Move-Up home:
Some millennials are avoiding the so-called ‘starter’ home and instead going directly to the ‘move-up’ home. Jessica Lautz, managing director for research at NAR, told Market Watch that many millennial buyers have put themselves in a good position in terms of savings, and want something more than a condo or a starter home. You'll want to make sure you're pointing your millennial clients in this direction when helping them with their home search.
The rise of Generation Z:
The first wave of Generation Z’ers will only turn 18 in 2017, but that doesn’t mean real estate agents shouldn’t be focused on them already. Indeed, Gen Z grew up in a very different time than the millennial generation, and experts say they overwhelmingly aspire to be homeowners.
At a recent panel at the 2016 Realtors Conference & Expo in Orlando, a group of Gen Z kids revealed that they want to be reached via technology platforms that were on their level like Snapchat, and not Facebook, which they say is for "old people." They also ranked green features and location as things they find important. Working with a real estate pro is also important to them. In fact,a whopping 81 percent of Gen Z said they want to work with an agent when buying a home.