Real estate trends everyone should know about.
Whether you’re looking to buy or sell a property, you’re about to enter a market that can be very intimidating. Real estate trends can be difficult to predict. Buying or selling a home is a complicated process, and the stakes can be incredibly high.
As home stagers, we have a unique perspective on the local market. We’re constantly monitoring the pulse—the “who, what, where, why, and when”—of local real estate sales. Our jobs depend on it.
We have a good sense of what’s coming, and we want you to be on the same page. Here are 5 of the biggest real estate trends you can expect in the next 5-10 years, in the Greater Jacksonville area and across the country. You can also hear about these trends by listening to Melissa Marro’s radio show, below.
Nationally, we are seeing some warning signs that another recession could be on its way. Thankfully, the housing market is doing quite well in Northeast Florida. We do see some pockets where it’s slowing down a bit, but overall we have a robust market—we’re seeing growth without inflation hitting us too much.
Real estate needs to be thought of as a long term investment, unless it’s a flip. The market will always ebb and flow, and a recession is likely to hit some markets harder than others.
2. Affordable Markets
The top 10 to 20 markets probably won’t look very different over the course of the next decade. These cities range in size and scale from Boston to Charleston, but most have something very important in common: affordability.
Historically, these markets have been relatively affordable cities to live in, and they manage to stay affordable even as they grow and the market goes up. What we see in many of these cities, including Jacksonville, is a lot of businesses coming in. Then there’s a big boom. These locations are good for businesses tax-wise, and good for employees who have nearby, affordable housing.
It’s already happening, but as we head into the 2020s, millennials are going to dominate the housing market.
What does a millennial buyer look for? Generally, instead of having a big house and a fancy car, millennials will spend their money on experiences. They’re usually not interested in the exurbs that their parents or grandparents flocked towards. Instead, millennials prioritize walkability, favoring old neighborhoods that have been rejuvenated or gentrified.
Locally, we commonly see this in neighborhoods like Avondale, Murray Hill, Springfield, Amelia Island, and Anastasia Island.
4. Baby Boomers
A “silver tsunami” will hit in the 2020s as most baby boomers approach their 80s. By 2035, a third of US households will be headed by someone over the age of 65. Like millennials, these boomers will be seeking convenience in a new home.
Many boomers seek out senior living communities with small homes they can either maintain themselves or pay for a superintendent to maintain through HOAs. Everything in these communities is within golf cart distance so they can go shopping and do everything else by golf cart.
Of course, the main issue with these communities is cost. Many boomers may instead opt to move into the “mother-in-law” suite of their children’s homes. Either way, this is often a period of housing transition, and the 2020s are likely to see a lot of interest in these types of homes from boomers.
5. Smart Homes
This is another trend we’re already starting to see. Video doorbells like Ring, smart thermostats like Nest, and smart speakers like Google Home and Alexa are commonplace in many homes now, not just higher-end ones.
But a homeowner can easily install all of these devices into almost any home, all by themselves. True “smart homes” are rare, high-end properties. Overall, these don’t seem to be having much of an effect on the market.
Now You Know Your Local Real Estate Trends
Now that you know what to look for, you can take advantage of all of the changes we face in the next decade. Home staging is one of the best ways to get ahead of your competitors and appeal to the right buyer demographic.
But don’t make the mistake of staging too late. You’ll get your best return on investment if you stage BEFORE your house goes on the market. Don’t get left behind by the market!