As the year 2020 moves forward, new trends and predictions in the real estate industry are on the rise. Every year real estate changes and welcomes new buyers with new wants and needs. In order to accommodate the changing times, the real estate industry must grow and adapt to meet the needs of buyers. Here are a few real estate trends on the rise in 2020:
More Widespread Rent Control
The year 2020 will see a huge rise in rent control, which means eating into investor interest in higher-cost markets. Ever since Oregon launched its rent control bill, which capped rent rises at 7% annually, other states such as New York and California followed suit. There is a major prediction that other high-cost housing states will do the same, which could be bad for investors. It’s already been found that 34% of multifamily investors have already cut down on their investments. With more rent control, more investors will be pulling out.
Millennials Becoming Homeowners
The millennial generation has already begun making waves in the real estate industry, and 2020 shows no sign of slowing them down. More and more millennials are interested in becoming homeowners. The generation is becoming less interested in inn-city living and opting for homes in the suburbs instead. The beginning of the new decade is seeing millennials entering their 30’s and nearly 40’s, making them the more likely generation to buy houses. It is predicted they will surpass 50% of all home purchase mortgages.
Going Down South
It is no secret that the south has seen a boom in the housing market. It is much more affordable and homebuyers are able to get more bang for their buck. As more begin to realize this, the more popular living in the south is becoming. People want affordable and comfortable housing, which is something they can have in the south. In 2020, the real estate industry will be seeing a big move to the south.
Climate Change is a Big Factor
For years, the real estate industry was not blind to how climate change could affect the housing market. However, 2020 will finally be the year to mark the first decade where climate change will factor into home-buying decisions. Throughout the 20’s decade, there will be higher insurance premiums in high-risk areas which will mean even less affordable housing for everyone. These areas that have the highest risk might not even be allowed to be covered by insurers altogether, which would make it very unlikely to secure a mortgage.