Blog > Top 10 Real Estate Trends You Can’t Afford to Ignore in 2024
As we head into 2024, the real estate landscape is shifting in ways that will impact how realtors and brokers do business. From rising mortgage rates to the growing demand for eco-friendly homes, these trends aren't just predictions—they're game-changers. If you're in the business, here’s what you need to know to stay ahead of the curve.
After a prolonged period of low interest rates, mortgage rates are expected to rise. The Mortgage Bankers Association forecasts a 30-year fixed mortgage rate reaching around 5.1% by the end of 2024. For buyers on the fence, this could mean the difference between affordable payments and being priced out.
2. Affordable Home Is More Important Than Ever
With median home prices expected to increase by 3.5% in 2024, affordable housing is becoming a critical issue. The demand for entry-level homes, particularly among Millennials and Gen Z, is set to rise by 6.5%, highlighting the urgent need for more affordable options.
3. Rentals Are Booming—Especially in the Right Markets
The rental market is poised for growth, particularly in cities like Austin, Nashville, and Raleigh, where rent prices are predicted to rise by 8-10% in 2024. This growth is fueled by the increasing number of people opting to rent due to the high costs of homeownership
4. Virtual Transactions Are Here to Stay
In 2023, nearly 60% of home buyers conducted some portion of their transaction online, and this trend is only expected to increase in 2024. As digital closings and virtual tours become the norm, realtors who adapt to this technology will have a competitive edge.
5. Green Is the New Black
Sustainability is no longer just a preference; it's becoming a requirement. 67% of homebuyers now consider energy efficiency a major factor in their purchase decision. Properties with green certifications or energy-efficient features are selling for 5-10% more than traditional homes.
6. Secondary Markets Are Stealing the Show
With primary markets becoming increasingly unaffordable, secondary markets are gaining popularity. Markets like Richmond, Maryland, Virginia, have seen home prices rise by 12-15% year-over-year, making them attractive alternatives for buyers seeking affordability.
7. Smart Homes Are the New Standard
Smart home technology adoption is skyrocketing, with 65% of homebuyers expressing interest in smart home features. Homes equipped with smart locks, thermostats, and security systems are not only more appealing but are also selling faster.
8. Home Offices Are Non-Negotiable
With over 25% of the U.S. workforce expected to work remotely in 2024, home offices are no longer a luxury—they’re a necessity. Homes with dedicated office spaces are selling at a premium, particularly in suburban areas where buyers are seeking more space.
9. Commercial Real Estate Is a Mixed Bag
While the demand for office spaces has declined by 20% since the pandemic, industrial real estate is booming due to the e-commerce surge. Warehouses and logistics centers are experiencing rental growth rates of 7-8% annually.
10. Diversity and Inclusion Are Front and Center
Diversity, equity, and inclusion (DEI) initiatives are becoming increasingly important in real estate. The National Association of Realtors (NAR) reports a 15% increase in minority homeownership rates, emphasizing the need for inclusive practices across the industry.
Staying ahead of these trends will be key to thriving in 2024. By understanding what’s coming, realtors and brokers can not only meet the market’s demands but exceed them. Want to get ahead of the market and stay updated for real estate opportunities? Contact us now for more.
Resources:
- Realtor.com, "2024 Housing Market Predictions and Forecast."
- National Association of Realtors (NAR), "Research and Statistics."
- Mortgage Bankers Association, "Mortgage Market Outlook."
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