Three Hot Trends in Today’s Real Estate Market
Whether you are buying, selling, or remodeling, knowing what’s hot in real estate trends can help you make the best decisions for your home. Real estate trends constantly ebb and flow, but it’s important to know what’s trending during these key milestones on your homeownership journey. Guardian Mortgage is here to help you stay informed.
The following three trends are taking place in the real estate market now. Understanding how they play into home decisions can help you:
- Make educated choices about priority features in a new home
- Determine how to list/market your current home for sale
- Select upgrades and remodeling projects that may mean a greater return on investment down the line
Top Trends in Today’s Real Estate Market
Trend #1: Larger Extended Families = A Greater Need for Space
Families are growing. From multi-generational households to pets, the need for living space has increased in the last decade.
According to Generations United, one in four Americans, or 26% of the population, live in a multi-generational household. This number has grown dramatically over the last decade – almost quadrupling between the organization's 2011 and 2021 surveys. A multi-generational household, by definition, includes at least three generations. This could be a combination of grandparents, aunts and uncles, parents, children, etc. With a variety of individuals living under one roof, space is at a premium.
The number one reason sellers sold during the pandemic was to gain additional space, according to the National Association of Realtors. The pandemic served as one impetus for individuals to move into multi-generational households. By moving in together, families could take care of aging loved ones, pool their money and save on costs, and provide grown children who moved back home with more space.* They were also able to support each other, a key benefit of multi-generational housing.
Households were not only growing through the number of human inhabitants during the pandemic. Pet adoption was also at a high, with people working from home and having more time to dedicate to four-legged friends. Millennials, who are the fastest-growing segment of homebuyers**, represent the largest segment of pet owners in the U.S. When home shopping, they look for areas that will be right for their pets, as well as backyards and space for their fur-babies.
Trend #2: Convertible Space is King
So, whether you are looking for a larger house or want to sell, highlight those larger common areas such as a backyard, finished basement, or a multi-purpose room – as a way to find additional space when multiple people/pets living under one roof feels tight.
Speaking of multi-purpose rooms, the desire to do more things at home doesn’t appear to be going away anytime soon. Extra rooms that you can use in a variety of ways hold a high value to buyers. The more uses you can find for a room the more value it maintains. Look for rooms that can be used for multiple purposes, including:
- Home office
- Game room
- Home gym
- Craft room
If you’re selling, stage rooms in your house to show how they can be repurposed and reimagined. You can also keep these types of spaces in mind when prioritizing your home remodeling projects.
Trend #3: Outdoor Features Rank High on Buyer’s Most Wanted Lists
According to a recent article in Kiplinger, “In today's housing market, outdoor living spaces have become the most coveted outdoor home feature.” An outstanding 82% of home buyers indicate they want a patio, and 81% say they want a front porch.*** Both are eye-catching and offer great curb appeal. They also provide additional living space for homeowners, giving them another space to relax and enjoy being outside.
If you have great outdoor features, such as a manicured lawn, garden beds, etc., don’t forget to showcase them with outdoor lighting. This feature also ranks high on the list of homeowner desires. Good lighting helps with presentation and the overall ambiance and enjoyment of your outdoor spaces. Best of all, it’s often relatively inexpensive to add. Kiplinger estimates the cost to install outdoor lighting at $260-$530.
No matter which stage you're at in your homeownership journey, you can learn a lot from current trends. Whether you’re looking to increase the value of your home for resale, enjoy the space you're in, or find a home that will meet your needs both now and in the future, these three trends will steer you in the right direction. Looking to learn more? Contact your Guardian Mortgage professional so we can help you stay informed on the latest in homeownership.
* Full-House: The Rise of Multi-generational Homes During COVID-19, National Association of Realtors, February 23, 2021.
** How Millennials are Changing the Mortgage and Home Buying Market, Forbes, June 1, 2021.
*** 15 Home Features Today’s Buyers Want Most, Kiplinger, August 2, 2021.