2016 was marked by low interest rates and a surge of millennials entering the housing market, so what can real estate professionals expect to see in 2017? MarketWatch recently broke down some major themes that will impact your business in the upcoming year.
Word to know: Surban
The suburbs are not dying, in fact John Burns Consulting says almost 80 percent of residential growth to occur in suburban communities over the next 10 years. Suburbs are, however, incorporating urban amenities like pedestrian-friendly shopping areas, general walkability, and entertainment options. This new type of suburbia also has a new name: Surban.
"These developments are more than simply mixed-use," says Danielle Leach, a senior consultant at John Burns Real Estate Consulting in Chicago. "Surban living is becoming a new way of life for many: where the blend of urban and suburban living provides the best of both worlds."
Housing preference to know: the Move-Up
Many millennials are skipping the starter home altogether and are focusing on the "move-up" home. According to Jessica Lautz, managing director for research at NAR, many millennial buyers have put themselves in a good position in terms of savings, and want something more than a condo or a starter home. You'll want to make sure you're pointing your millennial clients in this direction when helping them with their home search.
Demographic to know: Generation Z
Believe it or not, the next generation of buyers, those who make up Generation Z, are already becoming a focus for real estate professionals, since the first wave will turn 18 in 2017. Gen Z grew up in a much different time than the millennial generation, and experts say they overwhelmingly aspire to be homeowners. At a recent panel at the 2016 REALTORS® Conference & Expo in Orlando, a group of Gen Z kids revealed that they want to be reached via technology platforms that were on their level like Snapchat, and not Facebook, which they say is for "old people." They also ranked green features and location as things they find important. Working with a real estate pro is also important to them. In fact, a whopping 81 percent of Gen Z said they want to work with an agent when buying a home.
Source: "5 big real-estate trends to watch in 2017," MarketWatch (Nov. 15, 2016)