2022 Emerging Consumer Trends in Real Estate
June 10, 2022 (Investorideas.com Newswire) It has been an unpredictable two years in real estate. Where many expected a pandemic-driven market crash, prices began to rise at an incredible pace. Millennial homebuyers jumped into the market in a panic, afraid that rising prices would lock them out of the market forever, while older homeowners held onto their homes as prices on their downsizing options accelerated.
Meanwhile, commercial properties plummeted, and many property managers are looking to adapt and reuse properties as the promised "return to the office" happens unevenly.
As for 2022, at the halfway mark of the year, a number of trends are beginning to emerge that should guide real estate investors into the near future.
Green Building and ESG Perspectives
Real estate is responsible for about 39% of global carbon emissions, and it's an industry particularly vulnerable to the side effects of climate change, such as more extreme weather events and flooding.
This is leading institutional investors and REITs to approach their portfolios with an ESG perspective. They're looking into net-zero buildings and low-carbon building practices as they commit to improving their own performance on emissions.
A New Way of Working with Real Estate Agents
Real estate investors come to the table with a wide range of experience. They may be first-time investors looking for an income property or an experienced house flipper. One of the problems with real estate transactions is knowing exactly what you're getting from your real estate agent and what they can do for you.
While an experienced investor with multiple properties may be interested in paying the lowest possible fees with minimal services from the agent, a first-time investor may want more help finding the perfect property to turn into a rental or even continued help managing it.
Toronto-based startup company Nobul has begun to address this issue. Nobul is a digital marketplace founded by Regan McGee, a disruptor and inventor who moved from organizing real estate investment transactions to disrupting real estate.
Nobul has shifted the dynamic between client and real estate agent, as agents who use the platform send proposals to clients outlining their fees and services. The platform also provides a track record with verified reviews and past transactions.
More investors and homebuyers looking for themselves are likely to head to Nobul first as they search for agents who fit their specific needs.
Rising interest rates appear to be slowing down house prices in suburban markets, but it seems to be exposing the fact that suburban markets were largely not the first choice of many Millennial buyers entering the market for the first time.
Prices have been much more resilient in city centers, and it makes sense. People want the 15-minute lifestyle, where they can live in walkable places that are rich with amenities. The option to get to work, go to the grocery store, go out to eat, or drop the kids off at daycare without a car continues its appeal.
Even as work-from-home or hybrid situations continue, real estate in urban, walkable neighborhoods is going to remain in high demand, no matter what the broader market does.
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