The real estate industry is constantly changing, and 2021 is no different. With the onset of the pandemic, many industries have been forced to completely pivot their way of doing business. This includes the world of real estate. As we move into a post-pandemic era, it’s important to stay ahead of the curve and anticipate
The real estate industry is constantly changing, and 2021 is no different. With the onset of the pandemic, many industries have been forced to completely pivot their way of doing business. This includes the world of real estate. As we move into a post-pandemic era, it’s important to stay ahead of the curve and anticipate what trends may shape the industry in 2021. In this blog post, we will explore some of the emerging trends that are likely to shape the future of real estate in 2021 and beyond. From technology-driven solutions to virtual tours and more, let’s take a look at what might be coming down the pipeline for real estate professionals this year.
The rise of proptech
In recent years, there has been a rise in the use of technology in the real estate industry, known as proptech. This trend is set to continue in 2020 and beyond, as more companies look to adopt innovative technologies to improve the way they do business. Here are some of the key proptech trends that will shape the future of the real estate industry:
- Virtual reality (VR) and augmented reality (AR) will become more widely used for marketing purposes. These technologies will allow potential buyers to experience properties remotely, without having to physically visit them. This could help to speed up the sales process and make it easier for buyers to find their perfect home.
- Big data will continue to play a major role in the real estate industry, helping businesses to make better informed decisions about where to invest and how to price properties.
- Blockchain technology could also start to have an impact on the real estate industry, particularly when it comes to smart contracts and transactions. This could help to make the buying and selling process more efficient and secure.
- The use of drones is likely to increase in 2020, as they can be used for everything from surveying land to taking photos and videos of properties. This gives potential buyers a new perspective on a property and can help them make a more informed decision about whether or not it is right for them.
- 3D printing could also start to be used more frequently in the construction of
The impact of the pandemic on the real estate industry
The pandemic has had a profound impact on the real estate industry. The most notable impact has been the sudden and sharp decline in sales volume. According to the National Association of Realtors, sales of existing homes plunged by 21.8% in April 2020 compared to 2019. This is the largest year-over-year decline since the association began tracking data in 1968. The pandemic has also caused a sharp increase in foreclosures and delinquencies. According to Mortgage Bankers Association, the number of loans in active foreclosure jumped from 1.1% in February 2020 to 2.4% by June 2020. This is the highest level of foreclosure activity since March 2010.
The pandemic has also had a major impact on home prices. According to Zillow, national home values fell by 3% from February to April 2020, the biggest quarterly drop since 2009. However, home prices have begun to rebound since then and are now only 1% below their pre-pandemic peak.
The effects of the pandemic will continue to be felt in the real estate market for years to come. It will take time for sales volume to recover and for foreclosures and delinquencies to return to normal levels. Home prices are also likely to remain volatile in the short term as buyers and sellers adjust to the new reality of life during and after a pandemic.
The rise of co-living
In recent years, there has been a rise in the popularity of co-living arrangements, in which multiple people live together in a single residence. This trend is being driven by a number of factors, including the high cost of housing, the need for flexibility and community, and the desire for a more sustainable lifestyle.
Co-living can take many different forms, from shared apartments to purpose-built communal living spaces. In most cases, residents share common areas such as kitchens and living rooms, and often have access to amenities such as laundry facilities and recreation areas. Co-living spaces typically have a stronger focus on community than traditional apartments, with residents often taking part in communal activities and events.
The rise of co-living is having a major impact on the real estate industry. Developers are increasingly creating co-living spaces that are designed to meet the needs of this growing market segment. And as more people embrace this way of life, we can expect to see even more changes in the real estate landscape in the years to come.
The future of the suburban home
As we move into the 2020s, it’s clear that the suburban home will continue to be a popular choice for families. In fact, according to a recent report from the National Association of Realtors®, the suburban home is making a comeback as more families are looking for more space.
However, the suburban home of the future will likely look different than the suburban homes of today. Here are some trends that will shape the future of suburban homes:
- More energy-efficient homes: As we become more aware of the impact our homes have on the environment, we will start to see more energy-efficient homes being built in the suburbs. This could include features such as solar panels, energy-efficient appliances, and double-paned windows.
- More connected homes: We are already seeing a trend towards more connected homes, and this is only going to continue in the future. Our homes will be equipped with smart technology that allows us to control everything from our thermostats to our security systems from our phones or computers.
- More flexible floor plans: As families’ needs change over time, we will start to see more flexible floor plans in suburban homes. This could include things like multi-purpose rooms that can be used as an office, playroom, or guest room depending on your needs at any given time.
- More sustainable materials: As we become more conscious of our impact on the environment, we
The real estate industry is always changing and evolving, and 2021 will be no different. It’s important to stay up-to-date on the latest trends so that you can make informed decisions about your investments. The growing demand for digital services, changes in technology, and a focus on sustainability are just some of the factors that will shape the future of real estate this year. With these insights in mind, investors should be prepared to take advantage of new opportunities as they arise.