7 Key Real Estate Trends for 2023

What is the trend a few years ahead? In this article, we show you what the main trends in the real estate industry are:

Relocation from big cities to the suburbs is a development occurring before 2020 and accelerated by the Covid-19 pandemic.

There are other essential changes in the real estate industry to see over the next two years.

Here are five trends that are viral in the next two years:

House Hunting Goes Digital

We can see an increase in search about digital transformation over 500% in the last five years. The point is that the pandemic accelerated the digital transformation in all sectors, and the real estate sector is not an exception.

Because of the pandemic and competitive real estate market in 2020, many buyers purchased their properties online and without stepping in first.

Virtual tours were made possible for the buyers to visit the houses. Some of these virtual capabilities are:

  • 3D Tours
  • Drone videos
  • Virtual staging

“Virtual staging” has been searched more than 400% over the past five years.

Besides digital technology, paying mortgages can be done online now.

Searches for “better mortgage increased 125% over the past two years.

People Move from Cities to The Suburbs

The covid-19 pandemic boosted the migration from major cities to the suburbs.

It seems that extensive metro areas, like New York, San Francisco, and Washington, DC, rebound once after firmly passing the pandemic, but the migration from big cities to suburbs will continue for the next three years.

Industry experts say that pandemic will empower the migration to suburbs through 2025.

Necessity and choice are the two main reasons behind this shift. Some people can’t afford to stay, so they immigrate to the suburbs. The other group of people that are wealthy move relocates by choice.

People who lost their jobs due to the pandemic can’t afford big cities’ prices and move to more affordable housing options.

Some other people go to the suburbs for lower taxes and cheaper housing and rent prices.

The predominant feature of living in the suburbs is the single-family home. The government made these areas an excellent place for living out of the crowded cities. these areas retain some of the convenience of big cities, like: multifamily housing options, good public transportation, high walkability scores, and restaurants. 

With the increase in demand for these areas, the regulation will adapt with legal real estate instructions.

The Sun Belt’sBelt’s Popularity is rising

Where is the American’sAmerican’s destination after shifting from big cities? The leading goal for these people is the sunbelt in the south of the U.S.  

After the pandemic, the popularity of the Sun Belt increased. It is a good stimulus for past predictions about this trend.

Sun Bels is an area in the south of the U.S that stretches from California to North Carolina and includes 18 southern states. 

In the past ten years, about 75% of population growth has been held in the SunBelt states.

Home Prices Continue to rising

The real estate trends are interconnected. According to the increasing demand and poor supply, prices for single-family homes will increase in the last two years and will continue rising in 2022.

Shortly after the start of the pandemic, the real estate prices had reversed course and prices dropped, and people revaluated their buying decision. But after a few months, prices went back up again. Single-mainly home prices are increasing rapidly. And now the seller’s market is so robust at the start of 2022.

Rental Property Market Declines

Partly because of people’s shift from cities to suburbs, the rental market on both residential and commercial was on the decline in 2021.

 Young professionals have given up their apartments and moved back to their parents is increasing last year.

The migration from big cities has resulted in high apartment vacancy rates since 2010 and a decrease in rental fees.

The decline in the rental market creates some real estate investment opportunities.

Conclusion

As more people move to the suburbs and try to buy a single-family house, the pricing is expected to go up based on the pandemic tre3nds and the supply and demand equation. The mortgage rates are low, which will empower the demand side of the equation. 

Some of these trends will be temporary due to the pandemic, and some of them are legitimate, long-term trends that are likely to persist over time.

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