There was a lot of changes in the real estate industry over the past few years, mostly with higher prices of housing, and replacement of stores with vacancies in malls. Some of the most important factors that are changing trends in real estate business are urbanization, new technologies, and changes in demographics.
In the year 2024, we can also expect some changes in this industry, mostly because of economic and social variations. If you are interested in buying or selling a house or some other type of real estate, the best solution would be to hire an expert, such as UpNest, that could give you some important advices, and help you to buy or sell your estate for the best possible price.
Real estate agents are professionals who are best aware of situation in real estate industry. According to them, there will be many changes on the market in the following year, and we are going to introduce you with some of the most important trends that we can expect in the year 2024.
Demographic Changes Are Affecting the Real Estate Market
The current demographic situation at the global level tells us that in the next 30 years there will be more people who are over 60 years old, than ones younger than 15. While developing countries have larger population of younger people, the advanced countries such as the United States, Denmark, or Germany, could expect that the prices of houses will fall significantly.
Also, the demographic changes will affect the market with the need for more retirement and nursing homes, and cheaper houses, since there will be more than 9 billion people by the year 2050. According to that, there will be higher needs for real estate in food industry and agriculture.
The Expansion of Life in Major Cities Will Continue
There is nothing new in the fact that more and more people are going to live in bigger cities instead in the province, which leads to the conclusion that there will be more buildings, even higher skyscrapers. But also, more schools, health centers, shopping malls, and places for entertainment and rest.
Nevertheless, civil engineering is also affected, since there will be lack of space, so the urbanistic plan will also change. Also, there is a higher need for more ecological solutions in cities, so there will be buildings with more greenery, plants, trees, and everything else that will make peoples life more bearable. According to some statistics, there will be a need for around 50 percent more energy in the next 50 years, and we will need some new solutions for renewable sources that will fit in the terms of environmental awareness.
The Impact of Technology on Real Estate
The innovation in technology will also affect the market of real estate. Like many other jobs that are changing to be online, real estate agents will also be more like office workers, since there will be a smaller need for someone to take you to see some house or apartment. Furthermore, the smart house technology will spread among every new apartment, along with the implementation in older ones.
Nonetheless, the real estate agents will also have to learn some new skills, especially one that are connected with blockchain technology, since that technology is used for Artificial Intelligence that is implemented in smart homes for better security.
Much Lower Mortgage Rates
With a lot of oscillations in the economy in past few years and the trend of smaller rates, we can expect that in the year 2024, there will be a record brake in the term of mortgage rates, which will probably hit the lowest percentage since the global economic crisis. Buyers must take advantage of this opportunity by hiring a mortgage broker such as Spear Mortgage.
Also, the younger population is rarely buying any estates, which is one of the main reasons why banks and companies will have to come up with a solution to motivate them to buy estates. There are also other challenges, like a trade war between the United States and China, the current problem with the Covid-19 virus, and many other possible problems that could affect the real estate market.
More Affordable Houses
Currently, there is sort of a crisis with the prices of houses and other estates, and many people, especially younger ones are choosing to stay with their parents or rent an apartment, instead of buying a new one. The governments, along with the companies that are building homes, will have to come up with some new, and cheaper solutions that would motivate people to continue buying new homes.
There are some new projects where investors are converting old buildings into space for new homes, offices, shops, and this project should help people to find a way to buy a new home at some more affordable and reasonable price. One of the best answers for the project of restoration of some older objects into new houses and apartments would be if the government offer smaller taxes for both the investors and the people who would buy that home.
Higher Taxes for Renting
Since there is high popularity of renting homes instead of buying, which seems like a more sustainable solution for many people, especially younger generations, the renting business is in constant rise. Also, the prices for renting are not falling, they are constantly on a rise, and that is the main reason for countries to raise the taxes.
However, if there is a too high fee for renting an apartment, that would make owners of buildings in a bad situation, and rent will be even higher. The main reason for that is not only profit but also the responsibility of the owner to deal with the maintenance and upgrades of their buildings and houses.
As long as there is a continuous rise in the need for renting the apartments or houses, there will also happen to be higher taxes, higher fees, and, in the end, a monthly price for rent will be more expensive. The states and landlords will have to come up with some new solutions that will make everyone satisfied.