We’ve seen some big ups and downs in the real estate market over the past few years, especially in the post-pandemic landscape. With the current state of the economy, these fluctuations are not likely to stop anytime soon. However, data-backed trend predictions can help you prepare for them.
From metaverse real estate and artificial intelligence (AI) marketing to communal homeownership purchases and big data insights, the next decade could be interesting for anyone looking to buy their dream home.
So, what can we expect from the next decade of buying, selling, and looking for homes to live in? The mid-2020s and early 2030s have a few things in store for us. Let’s take a look!
The Importance Of Following Homeownership Trends And Predictions
The world of homeownership is intrinsically connected to social, cultural, and economic evolution, making it an interesting meeting point between many different aspects of modern-day life. Following its patterns and making predictions about the future is what we do.
However, following trends isn’t just interesting from an anthropological perspective. It also has immense practical value if you are looking to buy a home within the next ten years.
Not only does it keep you informed about general economic and housing-related developments, but it also empowers you to make better decisions when the time comes to purchase a home. The more information you have access to, the better your decision will be.
Homeownership Trends And Predictions For The Upcoming Decade
The next ten years of homeownership trends will feature a wide variety of different influences. AI, climate change, and changing social norms play an increasingly interesting role in how people buy and invest in homes.
Looking ahead from 2024 to 2034, the following trends will likely emerge as people worldwide adapt to changing times.
Increased focus on the total cost of ownership
There are many costs involved in the purchase of a home—not just the cost of the property itself. A predicted trend for the future is that there will be a deeper need for clarity around the total cost of ownership, thus appealing to prospective buyers who value transparency.
Some of the costs beyond the property cost itself to consider include:
- Inspection fees
- Closing costs
- Homeowners Insurance
- Maintenance costs
- HOA fees
- Mortgage rates
In the future, real estate agencies will likely market properties more financially comprehensively to attract a wider demographic of buyers. This may include providing a breakdown of expected monthly costs and home insurance quotes to give a more realistic overview of the financial implications upfront.
Reduced demand for real estate agents
On the topic of real estate agents, this is a sector that is set to undergo some changes. Trend predictions show an increasing reliance on technology that performs many of the same functions as realtors, and people are increasingly relying on online platforms for finding and buying properties. Homeowners and agencies are also becoming more open to dealing with cash transactions, lessening the need for a third party to get involved.
But that doesn’t mean there won’t be a need for real estate agents in the future—just that their roles might look different to what they do now.
AI influence in every area
AI is already playing a major role in how properties are marketed, bought, and sold, and this is not likely to change any time soon.
In fact, we know almost certainly that it won’t. Virtual housing assistants, AI marketing, and data capture are all going to become a bigger part of the real estate economy.
Big data insights
Data analytics is booming in all sorts of industries, including real estate. It is predicted that real estate agencies and companies will rely heavily on big data insights and analysis programs to better understand buyer needs, customer preferences, market trends, and pricing strategies.
Big data also benefits buyers, helping them find their perfect homes far faster and allowing them to negotiate better deals as they have access to a greater volume of information.
Metaverse real estate
Presently, there is a veritable explosion of AI and AR in the real estate universe. Being able to buy property in a digital world such as the Metaverse is something no previous generation has had the option to do, and many are still wrapping their heads around what that entails.
Digital real estate may not have gained its full traction yet, but onlookers predict that it will grow in both significance and value over the next decade.
Increased communal purchasing
Between 2017 and 2021, the number of houses purchased by people with different last names increased by 772%. Communal purchasing is massively growing in popularity.
These studies indicate that we can expect to see an increased number of home purchases made by multiple entities, such as joint ownership by couples or even groups of friends. This is due to a variety of reasons.
Firstly, with the cost of housing increasing annually, it is a more affordable decision to co-invest in a real estate purchase. Secondly, the cultural norms around how people buy houses are changing, with society now far more accepting and open to non-conventional living situations.
Experimental building methods
Climate change impacts everyone and everything, including the real estate industry. Houses built with sustainability and climate change in mind are likely to attract greater interest over the next decade. People are ready to invest in homes that will survive changing times.
So what does that look like? Alternative materials such as hemp concrete, bamboo, recycled steel, and even mycelium can be expected to rise in popularity.
Additionally, homes equipped with amenities that can handle increasing temperatures and turbulent weather are predicted to enter more mainstream appeal.
The bottom line
The real estate industry is in a permanent state of flux. But that makes following its trends and predictions crucial, especially for those planning to buy a home in the next few years.
To summarize, over the next decade, the housing sector is projected to be further influenced by AI, big data, climate change, and a communal approach to home investment. Equipped with this knowledge, you can make smart homeownership decisions for your future.