There’s an array of real estate industry trends in 2023. The key driver for these trends is the movement from urban areas to the suburbs. Suburbanization has led to led to an increase in home values in ‘burbs. On the other side, it is the main cause of a slight reduction in home prices in the cities. Whether you’re selling or buying a property, here are key real estate trends in 2023:
1.Urban-to-Suburban Migration
Based on statistics, a large population of people is migrating from cities to the suburbs. The two factors fueling this shift are choice and necessity. Individuals who are unable to afford to stay in urban areas are moving to suburban areas as a result of necessity. On the other hand, the wealthy people are relocating by choice. Most people opt for suburbs because of the lower rent prices and lower housing taxes. In addition, some people who are moving out of the urban centers are looking for middle neighborhoods. These are suburbs that retain the feel of the city. Living in the middle neighborhood makes it easy to access good public transportation, restaurants, etc. Retail loan lenders Evansville, IN always ready to help people to buy properties.
2.Rental Property Market Declines in the Cities
The rental market for commercial and residential property is declining in the city. This is because most people are migrating to the suburbs. Most people are opting to buy a house in an urban area rather than pay rent. On the contrary, people who can’t afford to stay in the city are moving out to reduce the cost of living. The migration out of big cities is a key driver to the high apartment vacancy rate in 2023. However, there’s an increase in rental properties in smaller cities compared to major metropolitan areas.
3.Increase in Demand for Single-Family Housing
Suburbanization is leading to an increase in demand for single-family housing. Realtors are expecting home sales to increase by at least 10% in 2023. Various factors are fueling the demand for single-family homes, such as:
– Low-interest rates
– The growing importance of single-family houses
– Strong housing trends
There’s high competition for single-family homes in the suburbs compared to cities. Therefore, real estate companies are investing in properties in the middle neighborhood to meet the demand. The rise in demand has created a shortage of single-family homes. But retail loan lenders Clarksville, TN guide you and help you to overcome the demand.
4.House Hunting Goes Digital
The development of technology is the main culprit for the digitization of the real estate market. There are AI-powered tools that help potential buyers view a home without stepping foot inside it. Real estate companies are offering virtual tours that consist of drone videos, 3D pictures, and virtual staging. Most people have closed home deals without having physical tours.
5.Increase in Home Prices
The increased demand for single-family homes has led to an increase in home prices. Realtors are expecting this trend to remain high in 2023. High home prices in the suburbs aren’t deterring buyers. An increase in property market value is leading to an increase in home equity. If you’re looking forward to financing your property, opt for reputable retail loan lenders like BridgeWell Capital.
Conclusion
There’s an increase in suburbanization in 2023. This has led to an increase in property prices in the suburbs.
