Here is what an expert panel from Forbes Magazine had to say about future real estate trends.
For those looking to invest in real estate, understanding the current market is essential to striking an optimal deal. But for current property owners or aspiring investors, it's equally important to know where the market is headed in the coming years. Any plans to buy, rent or sell in the near future could be significantly impacted by market conditions, and you may decide to make a move or wait it out depending on the circumstances.
To help you strategize your next real estate transaction, we asked the experts at Forbes Real Estate Council what they believe the most prevalent market trends will be in the next few years. Here's what they had to say.
1. Luxury Correction
As the market continues to normalize after years of aspirational pricing, I think we will see a seismic shift in what luxury looks like. More people will start to move away from expansive second homes and look to build tiny homes with minimal carbon footprints and crafty built-ins. There's now a real opening for the "tiny house movement" to be synonymous with luxury. - Elizabeth Ann Stribling-Kivlan, Stribling & Associates
2. Solid Underwriting
For multifamily valuation and investing, a return to more solid underwriting and basics is here to stay. The post-crash and recession aftermath days of rapidly escalating rent and lowering interest rates have ceased, which have tightened underwriting. - Lee Kiser, Kiser Group
3. Greater Price Separation Between Top-Tier And Low-Cost Housing
The market is already responding to growing society separation, offering both ultra-luxury residential properties with super-amenities and co-living arrangements. I foresee an even higher split in the future, ranging from mega-townhouses/palaces in large cities for the top 1% and ultra-condensed, low-cost, minimum-comfort housing for students, individuals and starters of society. - Elliot Bogod, Broadway Realty
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