Real estate transactions have slowed given the pandemic and there is a long road to having people feel comfortable to have others in their home to look at it. Real estate companies have started their predictions about the lasting effects of COVID-19.
Below are the top five predictions for real estate once the pandemic resolves according to Forbes.
Buyers will be more interested in larger spaces.
According to an article from housingwire.com, multifamily housing was exceptional in 2019 and luxury multifamily housing was supposed to grow exponentially. But, due to COVID-19, housing professionals are predicting that buyers will be looking for larger homes with more space in case we ever go through anything like this ever again.
“Boutique buildings, townhouses and technology will win out”
“Agents think that boutique buildings will win out over large developments and townhouses will become more prized” and this is because, it is separate enough of a space and one has their own private outdoor space. Additionally, touchless technology will become more prevalent in new homes. Consumers will see more remote access for locks, thermostats and smartphone accessories. Multifamily owners and managers of buildings will see challenges by renters and potential homebuyers of new builds to accommodate these needs.
“Outdoor space and home offices will become a hot commodity”
I can personally say, I spend equal parts of my time in my home office, back patio, and master bedroom when working from home. I enjoy the space because I don’t see my neighbors, living in a townhouse community, and it allows my dog and I the freedom to do as we please outside – and by do as we please, means me working and him squirrel hunting and napping.
According to Global WorkPlace Analytics, regular work-at-home has grown 173% since 2005 and 11% faster than the rest of the workforce. Additionally, 62% of employees say they could work remotely and after this pandemic passes, so as a corollary we should see a shift in employers moving employees to working more remotely and cutting costs in office workspaces.
“Construction prices will rise”
We saw a shortage of skilled laborers prior to the pandemic and expect even more delays in the permitting process and increased costs as the supply chains slowly recover. Superintendents will be working on keeping their staff even safer than before. Like most jobs, the managers will be watching their workers and making sure that if anyone is sick, that they be taken care of in order to eliminate the risk of contamination of all employees.
“The supply chain will shift”
“More than 30 percent of construction materials come from overseas, according to LePatner, from countries such as China, Italy, Brazil and India, which are facing their own challenges with COVID-19. “ The U.S. will supply more products but it will take years to get it back to the same speed as it was prior to the pandemic.
We additionally expect technology to continue playing a larger role in the real estate industry post-pandemic. Real estate agents have had this opportunity to become familiar with FaceTime tours, 3D tours, and other high-tech tools for featuring homes, as well as other ways to market homes outside of traditional face-to-face engagements like open houses – including creative use of social media. Learn more about how we help realtors use social media to market homes to the right audience.