The housing market never remains static for long. As there are always new real-estate trends to keep up with, ensuring you’re aware of what’s occurring in the wider industry will help you make informed decisions when it comes to the future of your property.
With that in mind, here’s our essential guide to the latest real-estate news.
Scarcity of labour
A shortage of experienced labourers is having an adverse effect on property development in countries such as the United States. Due to the high demand for workers, construction schedules are increasing in length – and expense. As a result, developers are opting to build higher-end properties in an effort to recoup lost investment. While this issue will likely remain prevalent for some time, solutions for reintroducing a satisfactory number of skilled workers into construction sites, such as additional support for vocational education, are currently under proposal.
The ‘velvet rope’
As urban areas soar in popularity, low-income neighbourhoods are becoming gentrified. In turn, this is pushing up house prices and forcing out long-term residents. Initially a big city issue, the pattern is continuing into the suburbs as millennials move outwards and demand the accessibility to certain services that is experienced in city centres. This is referred to as the ‘velvet rope’ of development, a real-estate trend that places financial pressure both on specific areas and the residents who already live there.
There are two main groups of home investors in the market today: baby boomers (51-69) and millennials (18-35), meaning that older and younger households are competing for properties in some of the same areas. Baby boomers are retiring at a rapid rate, and countries such as the United States now have a larger population of individuals aged 90 and over, all of whom require housing. This has led to an increase of multi-generation households as millennials reside with their parents for a longer period of time.
Real estate technology
Cities that adapt to new technologies such as online parking and improved transport systems become more attractive places to live. They also tend to appeal to tech startups, which bring improved job prospects and the attention of investors.
And then there's the real-estate trend of augmented reality. By projecting a virtual image of a property onto a blank wall, estate agents could soon be able to show clients their potential homes without needing to escort them to the physical building. This will be particularly useful if the property is still in development.
Although incomplete, another advancement in real-estate technology set to shake up the housing market is Blockchain – which uses the same digital technology as Bitcoin. Essentially, this service keeps track of data; it's used to record digital transactions, agreements and contracts. The advantages of Blockchain are in the safety and security offered by its encryption, making it especially suitable for transactions associated with high-end property. While only an emerging concept at the moment, Blockchain may become more mainstream as we transition into 2017.
Keep abreast of all of the latest real-estate trends by viewing the Engel & Völkers blog. As well as providing up-to-date news on changes in the property market, we have the experience and knowledge to help you sell your home quickly and efficiently. Why not call into one of our branches today?