Unemployment rates are now the lowest they have been in almost 50 years. This has led to a smaller employee pool to choose from, which has in turn driven wages up.
Both factors have also contributed to consumers now spending more money, and particularly, spending more money on housing.
Whether they are looking to buy a family home or rent an apartment, these buyers have demands and expectations that have to be met. Staying up to date on these demands is a must.
Keep reading to learn a few real estate market trends that are dominating in 2021.
Amenities are a Must
In competitive markets, real estate owners are now finding that buyers are increasingly demanding the newest and greatest amenities.
Where a gym or pool might have once made an apartment complex a hot commodity, now many complexes are offering luxurious extras like movie theaters, coworking spaces, coffee shops, gardens, dog parks, and more.
Inside the units, smart home features are also popular, especially among young buyers. Many already have Alexa or Google Home units and may be looking for a space that allows them to continue to use those devices.
Second Cities are Becoming Key Markets
While the popularity of city living among millennial buyers has been around for years now, many young adults are finding that the high cost of living in a busy metropolis is more than they can afford.
Still looking for the amenities of cities, like transit and plenty of food and shopping options, many are turning to so-called "second cities" or "18-hour cities."
These mid-sized cities are spread across the nation. A few popular, smaller cities that have seen a lot of growth in recent years include:
- Louisville, Kentucky
- Colorado Springs, Colorado
- Indianapolis, Indiana
- Madison, Wisconsin
Trendy and growing, these cities still offer affordable housing, often giving young buyers the chance to buy or rent a larger single family home for the same amount of money that would get them a tiny apartment in smaller cities.
A Buyer's Market
Because of the rising demand for housing in recent years, prices have gone up. This year, that trend will likely culminate in a slight slowing in the number of people buying homes.
As a result, what has been a seller's market in recent years will become a buyer's market. Fewer people looking to buy will now have the upper hand over seller's who might have only a year ago had hoards of potential buyers.
Keeping Up With Real Estate Market Trends
Keeping up with these real estate market trends can help you be prepared for what buyers expect as well as the direction the market is likely to go.
While housing costs are still high, in a buyer's market, it's important to make the most of your investment to keep from losing money on your sale. Check out these tips next to learn how property management can actually save you money come tax time.