Real Estate: 5 Big Trends to Watch in 2017

1. The Fix It Generation: Millennials Lead Home Reno Spending

  • 1-in-3 millennials prefer a fixer upper house with minimal repairs. (Source: housingwire)
  • They renovate sooner than boomers did because they prioritize personalized spaces.
  • Their renovation budgets tend to be smaller which means more DIY-projects.
  • The most popular feature replaced in a kitchen reno are countertops; in bathrooms: faucets or plumbing features and in all other rooms: wall color or texture. (Source: Houzz)
  • More are spending on system upgrades with 30% replacing plumbing pipes, 26% upgrading their electrical service and 21% updating their heating and ventilation system.
  • 76% are paying for upgrades from savings.
  • 20% put their home reno on their credit card!
  • 29% go over budget.

2. Reemergence of Suburban Living but with urban-living amenities

  • 2017 will see an increased shift toward suburban development by first-time buyers and downsizing baby boomers.
  • 80% of new homes being built are in  surbanareas, so-called because they offer suburbia’s safety and good schools along with the city’s walkability and excitement.

3. Stop Calling Millennial Homebuyers: Text Them!!

  • Loantek, a Bankrate company, is encouraging its loan officers to stop calling Millennials and start texting them instead.
  • Texting is the most frequently used form of communication for Americans under 50 (i.e. GenXers as well as millennials).

Read on below for the builders’ 3L’s and for the growth in continuum care housing.

4. The 3 Ls: Lots, Labor, Lending

  • Builders continue to face supply-side constraints led by the three Ls—lots, labor and lending.
  • The industry needs to recruit more workers which is now getting even harder with the crackdown on immigration.
  • Home builders are optimistic, however, that the new administration will lower construction costs. Regulatory requirements make up nearly 25% of the cost of a new home. Given those constraints, it is hard to build a $200,000 entry-level house.

5. Seniors Housing

  • The continuum of care trend will remain a focus for seniors housing operators and investors.
  • With more than 10,000 people turning 65 every day, this growing demographic offers opportunities for housing for the foreseeable future.
  • The most in demand properties offer independent living, assisted living and memory care.

Share this post on: