The year 2020 has been full of surprises, to say the least. However, the housing market is projected to normalize if not flourish going into 2021. Spring and summer of next year are predicted to see a higher demand in buying – mostly due to the 2020 delayed buying seasons due to the disruption early in the year. As make-up buying fades, home purchases will be propelled from a vast share of Millennial and Gen-Z first-time home buyers, as well as trade-up buyers from Millennial and older generations.
Additionally, as vaccines for the
coronavirus become broadly available and economic growth and job stability
resumes, it’s predicted that normal patterns of consumer spending will resume
and home sales will increase in the second half of the year.
Significant Housing Trends
Dominating the Market: Millennial and Gen Z
Millennials will continue shaping the housing market, most of which will be trading-up for bigger homes to accommodate their growing families. At the same time, Gen-Z buyers will be purchasing their first homes and locking into low mortgage rates. Both will be looking for remodeled, updated and upgraded and ready-to-live in homes.
Working from Home
As remote work extends into 2021 with employers granting employees flexibility to work from home, home buyers will be interested in listings showcasing features as home offices, finished basements and attics, and of course in-home luxuries, and extended living areas such as decks.
Moving from the City to the Suburbs
Most home buyers looking for affordability find it outside of urban built-up communities. A long commute, a growing family, and more space for value are just a few reasons home buyers want to move farther from downtown, central locations.
General Outlook for 2021
Even before the pandemic, new construction was booming in Chicago and suburbs. The result was from a growing demand for new office space and residential units. Many more residential multi-unit and high-rises have been built and more are in the process of being built.
Furthermore, the Chicago metro area remains very reasonable with respect to cost of living when compared to other major U.S. cities and sits approximately in the middle of the range. Even though we have seen a sharp increase in construction costs, inflation and appreciation of property values, the Chicago market is going strong.
Today’s home buyers are looking for luxury, smart homes and remodeled condominium units within convenient proximity to public transportation and amenities, they want the comfort of adjacent shops, parks, bike paths, bars, restaurants, bike storage, outdoor space, grocery shopping, spa and fitness facilities, etc. This shift in demand is what is driving new residential construction and mixed-use developments all over Chicago and suburbs.
The conclusion? The Chicago area and suburbs will continue to grow and there will continue an increase in more residential housing developments due to:
- Low interest rates estimated to rise
- Residential rental rates are increasing
- Higher home prices
- Higher mortgage costs
- High demand from Millennials and Gen Z
Real Estate 2021: What it Means to the Seller
To take it a step further, Millennials and Gen Z are estimated to flood the real estate market and sellers should re-think and redesign their remodeling choices to cater to both of them. If you’re remodeling and considering selling your home make these necessary upgrades:
- Make your house in tip-top condition by installing new siding and/or roofing
- Remodel the outdated kitchen and bath, replace carpeting with hardwood flooring
- Revise energy-efficiency of your home (install skylights, sun tubes, new windows and doors, roof solar panels)
- Upgrade any old appliances
- Install smart-home features
Keep in mind that the tech-savvy generations do hours of online research. Get all information about your house in front of them and make sure to highlight relevant features.
We’re here to help you better
understand what the current housing trends are and to transform your home
inside – out. Contact us to obtain more information on our interior/exterior
remodeling services, or to request an estimate.
Thinking of remodeling your home? Currently, we’re offering flexible financing options with 12 months of no interest! Learn more by visiting: www.prohome1.com/offers/financing
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