The two long years of the pandemic have left many after-effects on the real estate sector. But 2022 has been a much better year when it comes to dealing with the pandemic, this whole year has gone in recovery, and 2023 will hopefully come with a better economic condition for businesses. That and many other variable factors have developed some new trends in this industry. What are they, and how can they affect your business?
Though things have been gloomy and recovery has been extra hard for this industry, some positive changes and trends are on the way. There were many new trends and changes in the industry, like Zillow and the government Census survey, which found that more than many people could now afford homes in suburbs. These same people could never afford a home in the city, but remote work has given them the opportunity to move to the suburbs and buy their own homes.
From greater technological advancement to unstable mortgage rates, many trends permanently impact this volatile industry. As a real estate business owner or property manager, you must stay on top of these trends to understand the market and your customers better.
Top 6 Real Estate trends for 2023
Below is a list of top real estate trends you need to look out for this upcoming year. Take a closer look at them and plan your strategy and leadership accordingly to incorporate these trends into your business strategy to make better progress.
Digital house hunting is gaining momentum
Digitalization is accelerating across all industries, and the rise in technology selection is reshaping how people look for houses. NAR market survey reports on “Real Estate in a Digital Age” have found that more than 97% of Americans used the internet to conduct their house hunt. Many of these people also look for 3D home tours and VR tours of houses before making a final decision.
Many people are making offers on houses and property units based on virtual tours because traveling has become a major hassle after the pandemic. This rising trend is shaking up the industry, and the VR tour market is growing leaps and bounds. According to PR Newswire reports, this market will reach $6.5 billion globally by 2030 at a 31.0% CAGR. Research also says that more than 50% of adult home buyers now take VR tours before physically visiting a house. This trend is here to stay in 2023, and you should start preparing for it.
Co-working spaces will remain in demand
Most offices are now offering complete remote working options, which has given people the opportunity to work from anywhere. Many companies also provide co-working space passes to their employees to allow them the freedom to work from an office space if they want to. And many companies have gotten rid of their permanent offices and have shifted to co-working spaces to cut down on costs.
The employee footfall in offices is low, with remote and hybrid work trends allowing the rise in demand for co-working spaces. Zippia stats have found that as of 2022 end, more than 900,000+ Americans use more than 6,200+ co-working spaces in the country, and the demand is increasing by the day.
E-commerce will be more important than ever
Global e-commerce sales rose drastically after the pandemic when people could not step into stores to shop. According to a Statista survey, as of 2021, the industry was valued at 4.9 trillion U.S. dollars worldwide, and the numbers are set to reach 7.4 trillion dollars by 2025. This means that the demand for storage units and warehouses will keep rising, and the demand for retail stores will also decline. If you are a real estate owner, you need to take this trend seriously, refocus your resources, and cater to this new market.
PropTech investments will get more budgets
Many different PropTech trends are redefining the way the real estate industry conducts business. Among them, many new software options in property management to help in the automation of repetitive tasks are the most used technology selection. Things like VR, autonomous drones, RPA chatbots, etc., will stay trendy in the market, and more companies will adapt to these changes.
Millennials are joining the homebuying population
Fortune news reports on the NAR survey say that 43% of the homebuying crowds are now millennials. These people who grew up during the pandemic have reached the potential age of buying their own homes. These people have different demands than boomers. They want sustainable and green housing options and smart houses to save energy and make their busy lives a little easier. So if you are looking to get into this market, you need to revamp your portfolio according to these new demands. Many are also looking at new places to buy homes in, and looking for places that are safer to stay in.
A huge city to suburban shift
The millennial homebuyers are very different from the boomers; they want to focus on health and overall wellbeing than just cater to city life. The pandemic helped many of these people save a lot of money when they did not have to commute to work. Though this money is enough for them to buy urban houses, they can surely afford to buy suburban homes.
With these two factors added together, many of these remote workers are now buying houses in the suburbs and permanently shifting. This has opened up a new demand for suburban homes, and this trend is here to stay in 2023.
Preparing for the new years new real estate trends
After two years of a business slowdown, the real estate industry is recovering. You need to strategically plan all your next steps to beat your competition in the upcoming year. The market is volatile; do not add bad strategy and leadership to this cocktail and burden your business even more than before.
Get outsourced help from the Assetsoft team. Our range of services is quite diverse, from technology selection to planning strategy and leadership to project management. Do you want to know more about them? Get