2022 Real Estate Trends and Forecasts

The housing market will rebalance, and a hybrid model will reduce the demand for student housing. Rising interest rates and the impact of Covid19 on low-income earners will also be discussed. Finally, this article will examine ten new real estate trends and forecasts for the next two years. These trends will impact real estate sales and marketing, as well as how we buy and sell property.

As the US real estate market continues to exhibit seasonality, it also demonstrates that demand is not diminishing. In 2022, however, rising interest rates will significantly impact the national housing market. The good news for home buyers is that price stability may alleviate some of their affordability concerns. Unfortunately, the housing supply issue will persist for some time, and labour shortages and supply chain issues will slow the pace of new construction.

According to the most recent forecasts, a rebalancing is on the way. A recent Moody's Analytics report examined house values in 414 major U.S. markets and estimated price changes. For example, the two-year price decline in Florida is the most pronounced, owing to the state's massive increase in home-building activity over the last two years. In 2023, Florida's housing market will almost certainly have too much supply compared to demand, and home prices will likely continue to fall.

While the student housing industry is changing, experts do not anticipate significant changes. The pandemic has taught us that face-to-face learning, socializing, and co-working are more valuable than digital content. Instead, we can expect hybrid models similar to those in the office sector, in which students take online and offline classes. While the demand for student housing is unlikely to be significantly affected, experts believe it will continue to grow in the coming years.

Students will remain cautious in 2022, but demand for large double and single rooms will increase. Off-campus housing was better prepared for the pandemic, with units having one-to-one bed-to-bathroom ratios. Within shared space, these units provide the most autonomy.

The COVID-19 pandemic is expected to have a significant impact on low-income earners. Indeed, many residents of affected areas report income loss and ongoing concerns about the pandemic. According to national surveys, the virus has affected low-income earners, households, and communities. Furthermore, food insecurity has remained a significant issue. Although families can easily access food assistance programs, the amount received is insufficient to meet their nutritional needs.

Vaccination programs will be critical in mitigating the effects of COVID-19. The vaccine has been recommended for low-income individuals and those suffering from chronic diseases such as asthma. Despite its benefits, COVID-19 infection can cause severe problems for low-income people. In 2022/2023, the impact of the COVID-19 pandemic on low-income earners will be more significant in areas with lower vaccination rates.

According to the Urban Land Institute's latest report, Emerging Real Estate Trends 2022, home prices are outpacing wages, forcing millions of potential buyers out of the market. In addition, down payments are often just out of reach for many people, forcing them to remain in the rental market. Rents are also increasing faster than wages. These trends are expected to continue into 2022 and beyond.

Despite rising interest rates' impact on housing markets, many experts believe demand will remain strong through 2022. Rising wages, better-paying jobs, and a rising stock market will fuel buyer demand. The most significant barrier to housing will continue to be a lack of available inventory, but housing starts will slow the rate of price increases. Furthermore, the work-from-home trend is expected to continue for the foreseeable future, reducing the availability of affordable housing in desirable markets.