3 Important Developments In The Property Sector This Year
The housing market will experience moderate growth rates and sustained low mortgage rates this year. However, the housing inventory is low, and there are not enough new homes that are being built to meet the demand. This brings builder confidence higher than it has been in two decades, according to the National Association of Home Builders (NAHB). For builders and developers that are planning to expand their inventory, whether building to rent or sell, here are important developments in the real estate sector to expect this year.
From Downtown To The Suburbs
The majority of home buyers are millennials at 38%, and as they become parents of kids who are soon going to school, there is a high demand for family homes. As real estate prices rise, developers are pushing to build new structures outside of big cities or in the suburbs to accommodate demand and offer affordable homes. These communities of residences are also connected to transport systems and the presence of retail shops, and recreation areas make the suburbs attractive to buyers without the feeling of isolation. For example, Bayberry Homes prioritize community values in their homes in Middletown, Delaware, a suburban location with ample shops, restaurants and entertainment venues in addition to schools.
Housing For Seniors
As life expectancy increases, more people are going to enter their retirement years. Statistics from Harvard’s Joint Center for Housing Studies indicate that the number of Americans over 80 years will increase from 6 to 12 million in the next two decades. Moreover, the same report also predicts that by 2035, one in three US households will be headed by a person 65 years or older. Consequently, property developers will be building a variety of housing options for seniors, from upscale apartments in cities to independent living communities. For older people who want to age in place, renovations and modifications of existing homes will focus on making them accessible and comfortable for the elderly. House sharing is another option in new builds, with subsidized housing helping to stabilize the rents of seniors.
Life plan communities may not be the solution for seniors who do not have the means to pay the initial high entrance fee, but in the long run, it may be the cheaper option. Seniors who might need skilled nursing care in the future can opt for this combination type of living arrangement in a single complex or campus, allowing residents to move from independent to assisted living, and from there to skilled nursing care, if necessary. Ventana by Buckner, a continuing care retirement community (CCRC) is an example of a high rise senior housing with upscale amenities.
Adoption Of Technology
Real estate has not adopted or embraced technology that quickly, but it is gaining ground. Smart home adoption is expected to increase, especially in using digital assistants and security cams, as well as fitting intelligent appliances that will make living and maintaining a home a breeze. Property companies are also developing new products that will revive the multi-family sector. Services that will simplify the operations and maintenance of apartment dwellers are going to be offered, from package delivery to digital concierge assistance.
Considering that around 4.6 million units need to be added by 2030 to keep up with the demand for apartment living, the building industry is anticipating the development of units that are more personalized and adaptable to changing lifestyles, according to a report by the National Multifamily Housing Council (NMHC). The best way to differentiate a developer or builder is to use better technology and more technology to give the residence a distinct character. Hence, expect to see dedicated lockers that can hold packages and even refrigerate grocery deliveries, smart locks that are app-centric, and ground-up applications that residents can use to communicate and meet, and hopefully form a community.
The housing market in 2020 is stable. Emerging trends such as the revival of the suburbs, senior housing, and aggressive adoption of technology in making smart and connected homes are some important developments in the property sector this year.