6 Emerging Real Estate Trends in 2021

 
ionut-vlad-idXQEOxhmvU-unsplash (1).jpg
 

Real estate, like nearly every aspect of our lives, took plenty of blows during the pandemic.

People fled big cities and, freed up by working remotely, clamored for homes in the suburbs. Locked-down families craved more space, landlords fretted over collecting rent from tenants struggling with unemployment, and commercial storefronts and office space sat empty.

Now as we look ahead, real estate is considered a bellwether for the future of an economic recovery, population migrations, consumer demand, and more.

Roofstock selected 10 emerging real estate trends in 2021, using data from the Emerging Trends in Real Estate 2021 report compiled by PwC and the Urban Land Institute. The trends cover topics such as investment prospects, notable real estate markets, population migration, and the effects of COVID-19 on residential and commercial real estate. The trends in this report are based on interviews and surveys of more than 1,600 people who work in real estate advisory, investing, lending, or real estate development.

Trends in real estate are intertwined. Construction costs are high as commodities are expensive, and supply chains are disrupted. Consumers' shopping habits have altered demand for brick-and-mortar shops, warehouse space, and online goods distribution centers. Rents are soaring, and houses in some places are sold within days, well over the asking prices. Keep reading to see how these elements are influencing emerging trends in real estate this year.

As jobs come back across the U.S., people who were renting may find themselves able to take out home loans, adding more buyers to an already competitive market. Some experts have predicted the housing shortage will continue for years before self-correcting.

While building slowed during the pandemic, construction costs—both labor and materials—soared. Many of the price rises were a result of worker shortages and disruptions in supply chains for commodities and raw materials. The price of lumber, as one example, rose by more than a third. Costs continue to be high, compounded by a shortage of skilled labor.

COVID-19 accelerated the development of public open spaces, decline of storefront retail

A 2020 survey from Ernst & Young Global Limited found 33% of consumers anticipated shifting more to online shopping; in 2021, nearly 40% said they are still shopping at physical stores less than before the pandemic started. Consumers are showing less tolerance for service disruptions linked to the coronavirus. Just one in five of those surveyed said they are forgiving retailers for such disruption.

COVID-19 has also elevated the discussion around how critical open public spaces are and the disproportionate access different demographics have to them. Roughly 100 million Americans do not live within 10 minutes of a park—a statistic that came into sharp focus in 2020. Restaurants setting up outside seating, along with surges in discussions around and demand for more open spaces, are driving infrastructure projects that will answer that need from coast to coast.

Suburban migration is growing and will likely increase

City residents started heading for the suburbs to work remotely when the pandemic hit, and they are continuing to do so. Many in this demographic are largely moving to suburbs close to cities—such as New Yorkers moving to New Jersey or Connecticut—leaving the option to return to the office part-time. A suburb close to the city also offers access to urban amenities. Experts say demand will continue to grow for single-family suburban houses.

Government-sponsored enterprises bring the capital for real estate institutions

Government stimulus for coronavirus-related economic recovery is helping boost the real estate sector and real estate investment trusts. Funding helps tenants stay current with rent, allowing landlords to pay their mortgages, property taxes, and other expenses. Other government funding has gone directly to landlords and to small businesses, also benefiting real estate investments.

Effects of COVID-19 are exacerbating the affordable housing crisis

With housing prices rising, affordability has become a worsening crisis. Across the country, rents have gone up more than 7 percent in 2021, and they are expected to continue to rise. By definition, affordable housing means the property costs 30 percent or less of a household's income. It's estimated that nationwide, there is a shortage of some 6.8 million rental units for tenants with extremely low incomes.

Raleigh/Durham and Austin are two real estate markets to watch

In Raleigh, one of the hottest real estate markets in the nation, houses listed for sale are on the market an average for a mere four days as of July 2021. Demand for housing is fueled in the area in part because a high number of buyers have good credit scores and are prepared with healthy down payments. In Austin, median home prices have been hitting record highs month after month. Housing prices are up some 42 percent from where they were a year ago, according to local realtors there.

Investment prospects are highest for industrial/distribution and single-family housing

Industrial and distribution properties are strong commercial real estate investments since e-commerce grew so dramatically amid the pandemic. With more e-commerce and less business at traditional brick-and-mortar stores, warehouse space is needed for goods. According to one estimate, 330 million square feet of warehouse space will be needed to house online orders by 2025. Additionally, companies doing sales online need distribution centers as they seek to improve their delivery systems.

For more Real Estate trends, visit Newsweek.

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma

New Hotel with Cafe Opens in Winter Park

 
Photo courtesy of Gravity Haus Winter Park

Photo courtesy of Gravity Haus Winter Park

 

The new Gravity Haus Winter Park hotel opened Friday after renovating the former Sundowner Motel on US Highway 40 to house guest rooms, a cafe, a gym and a coworking space.

So far, 10 rooms are open for booking with the remaining 28 to be finished remodeling in the coming weeks. Rooms are decked with eco-conscious products and the hotel is dog-friendly.

Gravity Haus is a membership-based hotel company with locations in Denver, Vail and Breckenridge as well. Anyone can book rooms at Gravity Haus hotels, though members get discounts, special perks and more.

“Through tailored around authentic outdoor experiences, Gravity Haus Winter Park seeks to be the place that fosters a community built around an outdoor and eco-conscious modern lifestyle and who are looking for a place to stay, play, work and connect like a local,” founder and CEO Jim Deters said in a statement.

The Unravel Cafe will serve breakfast, lunch and dinner from 7 a.m. to 10 p.m. with a full bar, beer garden and in-house roasted coffee.

Also available to guests or members is the StarterHaus coworking space open from 6 a.m. to 6 p.m. daily.

Gravity Haus Winter Park will have an outdoor gear rental program, including bikes, skis, snowboards, paddleboards and kayaks.

Coming later in August will be the Dryland Fitness center, which will feature cardio and strength equipment, professionally-led classes and open gym times.

Most of the hotel’s amenities and information is available on the Gravity Haus mobile app, where guests can check-in, have keyless access to their room, contactless guest services and book reservations for the hot tub, fitness classes, gear rentals and coworking spaces.

For more about Gravity Haus Winter Park, including membership, go to gravityhaus.com/locations/gravity-haus-winter-park.

Get more Winter Park news on Sky-Hi News.

Related Links

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma

So Many People Moved for Their Pets in the Past Year - Would You?

unsplash-image-2xgy8YVVXpA.jpg

Here’s how to re-create it in whatever home you buy.

When you’re shopping around for a new home, you don’t just have to take your own likes and dislikes into consideration—your pet’s interests matter, too. We want our four-legged friends to be able to get around the house (or yard) with total ease, which can narrow down the optionsAccording to a survey of 1,600 homeowners from Homes.com, 68 percent of people who weren’t already living in a pet-friendly place said they have moved for the sole purpose of accommodating their furry pals in the past year. And more than half of the respondents admitted they’ve dropped plans to purchase a property because it wasn’t a good fit for their companions. 

So what if you stumble across your dream house—top-notch range, walk-in closet, tiled shower—but it’s not necessarily 100 percent compatible with your dog or cat? Before you walk away in search of more square footage, hardwood floors, or a mudroom, remember that these small renovations can make everyone feel a little more at home.

The Discreet Doggie Door

Swap the usual plastic flap for a hand-welded steel door with one operable panel at the bottom. Designer Sherry Hart created this stylish option that features surface bolts that allow the owners to lock or unlock the door and leave it open so their pets can exit the wet bar–slash–laundry room and run out to the pool when they please.  

The Claw-Friendly Climbing Wall

In an effort to accommodate their Bengal cat Miss Cleo’s adventurous nature and love of heights, Caitlin Mociun and Tammer Hijazi constructed a system in their living room made from IKEA Lack shelves and sheepskin throws. Bonus: If she ever tires of climbing down the road, the platforms can be used for books.  

The Low-Maintenance Yard

You don’t need a palatial grass-covered backyard in order for your pups to enjoy being outdoors. Leave the greenery to the walls like Whitney Leigh Morris did at her tiny bungalow and embrace easy-to-hose-down gravel that’s urine-proof instead. Her lower-energy pooches spend their days lounging on the stain-resistant couch anyway.

Subscribe to Domino Magazine. Photos courtesy of Domino.


If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma

Vail Real Estate Market Report from July 2021

market_stats_Aug-21-insta-Vail.jpg

If there is a home that you would like more information about, if you are considering selling a property, or if you have questions about the housing market in your neighborhood, please reach out. We’re here to help.

Search Homes in Colorado

Search Homes in Oklahoma