Are you wondering what types of trends you’ll see in the real estate industry in the near future? From the type of homes that are in demand to the way people buy homes, the housing market is constantly evolving. Here are six real estate trends we’ll see in 2023 and beyond.
1. The Number of Homeowners Interested in HELOCs Will Increase
Since mortgage interest rates have increased, a growing number of homeowners are interested in Home Equity Lines of Credit (HELOCs). These loans act similarly to a credit line, allowing you to borrow against a line of credit. The advantage is you may even be able to get a HELOC with bad credit in this market.
So, what are people using these equity lines for? In addition to using them as a home refinancing option, many people are taking advantage of higher-valued HELOCs as a way to pay off credit card and student loan debt.
2. Less is More When It Comes to Home Size
One of the trends we’ll be seeing in 2023 and beyond is the rise of smaller homes. If you’re into real estate investing, this may matter to you since smaller homes tend to be less expensive.
During the pandemic, everyone wanted large homes so they had space for kids who were homeschooled. At-home theaters were a great alternative to going to the movies, and home gyms allowed us to exercise in a germ-free space. But now that we’re all out and about again, small houses are a real estate market trend that’s back.
3. There Will Be a Rise in Cash Buyers
Many home buyers are looking to avoid the rising interest rates that have been happening over the past year. A lot of stock market investors are also pulling their money out and looking for more sustainable investments. For these reasons, there’s going to be an upswing in the number of people buying homes in cash in 2023.
4. Single-Family Homes Will Become Less Common
A real estate trend we’ll likely continue to see going forward is the decline of the single-family home — especially in urban areas. This trend, which obviously only applies to new constructions, could have a drastic impact on our country’s culture. We’ll be seeing more multi-family homes being built in an attempt to create more housing in urban areas.
A lot of this has to do with the current state of the real estate market. With rising interest rates and higher home prices, it’s easier for a larger family to split the costs of a home.
5. The Rise of Home Workspaces
With many people working remotely since the pandemic, it’s no surprise that many home builders are now incorporating home offices into most home designs. In fact, you might find multiple home offices in a single home since many families now have more than one person working from home. Instead of working out of walk-in closets that have been converted into offices, people now have designated rooms for their offices.
6. Many Homes Will Now Offer Inviting Front and Backyards
Have you seen photos of homes that have glamorous outdoor areas? From luxurious outdoor furniture, poolside patios, fairy lights, and fire pits that look so inviting in photos, these outdoor spaces look like they belong in a home decor magazine. But more and more people are focusing on incorporating welcoming outdoor spaces into their yard designs.
The reason for this is simple: the pandemic has taught us that we don’t need to go out to have fun. We can enjoy spending time with our friends and family from the comfort of our own yards! You might also notice that more of your friends are now using landscapers than they once did. People want to keep their yards looking extravagant for all of those outdoor BBQs they’ll continue to hold, even as the world has returned to normal.
These are just six real estate trends you can expect to see going forward. From smaller homes to the rise of multiple workspaces in a single home, there’s no doubt that there are a number of unique trends in the real estate industry.