We’ve been through quite the culture shock lately, not least with the state of the economy over the past year. We’ve been through an economic crash, we’re still facing the effects of it, including an energy crisis and a possible recession. All of this, plus other factors contributing to a change in lifestyle are causing changes in the housing market. Take a look at our suggestions for the major cultural touchstones that will cause the biggest ripples in property trends in 2023.
Remote work will affect commercial real estate
While a lot of elements of the Covid lockdowns have resolved themselves, the idea of working from home has never gone away. More and more businesses are taking on remote workers, to the point that it’s considered a benefit on a job description now and it’s having an effect on property trends. It means the commercial real estate market is shrinking. Business owners are now sharing spaces they originally were filling up or getting rid of their spaces entirely if they can. There are predictions from analysts that this will continue over 2023.
Rental markets in cities will decline
Or, rather, that should be “continue to decline”. One of the property trends that is a side effect of working from home is that a lot of people are rethinking their location. A lot of people have been through the phase of wondering why they have to live in the city, with the soaring rent prices, the hassle, the chaos, and their own reasons not to, and are simply moving out. Throughout lockdown and since, the rental market has shrunk and it’s predicted to keep going in that direction. More bosses are embracing/accepting the idea of working remotely, and more employees are taking them up on it.
Smart parking solutions
An expanding market, however, is the smart parking market. Private parking is one of the fastest-growing industries in major cities due to its combined high demand and lucrative opportunities. People are now starting to use apps to navigate and negotiate parking spaces. You can rent them out for any time or the times that you’re not using them all via apps on your phone.
Along the same lines, the idea of online shopping for your home is predicted to continue to expand over next year. Homebuyers are seeing more details on listings found online, and this popularity in the concept has meant that real estate professionals are pulling out all the stops to catch your attention. Home listings feature virtual staging, augmented reality, 3D tours and drone videos to give you a full idea of the home and catch the attention of the buyer.
Home prices will rise
As mentioned, the world is going through a painful period when it comes to money. War, famine and plague sweeping the world has had a bad effect on western economies, which means a knock-on effect on the housing market. Millennials waiting for the market to crash so they can afford a home are going to be disappointed next year as analysts say that house prices are only going to rise. Instead, current homeowners that might have considered moving on are renovating their current homes with energy-efficient resources and improvements.
Number of real estate investors will shrink
All of this culminates in the result that there is likely to be a lot fewer individual real estate investors in 2023. Hedge funds and corporations are buying up real estate and individual investors are therefore finding affordable sales hard to find.