Does it feel to you like 2020 flew by? Because us too. The year saw unexpected trends in real estate ranging from renters in nearly a dozen cities caring more about allowing dogs than the number of bedrooms all the way to nearly one in eight people making an offer on a home sight-unseen. Whoa… That said, although we don’t have a crystal ball, we predict the following real estate trends will leave a big mark in 2021.
Demand for City Living
Although Houston didn’t experience the mass exodus that many expected, we believe that a good number of those who left the city will return, either for a.) the wealth of jobs the city provides, or b.) for the somewhat cheaper rents stoked by reduced demand for city dwellings. With the vaccine rollout scheduled to have a major impact by the middle of 2021 (we hope!), there’s a solid chance that many workers who left Houston will also be forced to commute back to work again… And let’s be honest, it’s just easier to commute within the city.
Rental Prices Will Rise
Time to start looking for a roommate? Don’t hit the panic button yet – just keep this possibility in mind when it comes to your budget. Many landlords felt the pain of lost income when some tenants could not afford to pay rent. In fact, 12 million renters will owe approximately $5,850 in back rent by January 1st. In addition, as Gen Z graduates from college in a rough economy as vaccine rollouts potentially peak, there’s a good chance this young generation will migrate to Houston and other cities to locate work. As a result of increased demand for apartments and in an effort to make up for past losses, landlords might hike up rental prices.
Home Values Will Continue to Soar
The price of homes skyrocketed in 2020, leaving many sellers in enviable positions as buyers engaged in bidding wars on popular homes. With the national housing inventory currently at just a 2.5-months supply, we expect that home values will continue to soar as eager buyers compete with each other to purchase a home.
Virtual Tours Here to Stay
Long gone are the days of touring a home in-person first. Rather, we expect that prospective buyers will continue to make good use of digital tools like virtual tours in order to gauge their interest in a home. From there, they can either view the home in-person or make an offer. These tools not only make competition for homes more fierce, they also make finding the perfect home much, much easier.
Only time will tell if any of these predictions will ring true. Either way, 2021 is on its way, and we hope that yours is as fabulous as can be!