With the new year comes a new you, right? Is the same true for your business? You’re likely making a few of those important New Year’s resolutions for both your personal and business life with the hopes that you won’t be sitting on a list of broken dreams come February 1st.
But have you factored the 2018 real estate trends into your commitment to a new marketing campaign, new year of revenue goals, or resolution to drive up client acquisition 25% in the first quarter? Getting ahead of the game by considering how the industry will change in the new year might just set you apart from your competition. So, what will the new year bring for the always exciting and ever-changing real estate industry?
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Tax Reform and its Impact on Real Estate
While we are still in the early stages of tax reform, it’s very possible that the new legislation could have a major impact on housing and commercial property. Low-income housing tax credits may be effected, as well as tax deductions on personal income and 1031 tax-free exchange programs. But for commercial real estate, corporations may have more money to invest in needed property which could boost profits for CRE professionals. While it’s quite early in the process, this is one of those areas any agent and broker should be keeping a close eye on.
High-tech Construction is Moving from Hype to Home
With labor shortages in the construction industry at an all-time high, homeowners and developers are embracing modern technology when it comes to their next home. In 2018, we’ll likely see more prefab and 3D printed homes hitting the market, and the industry as a whole will benefit from safer job sites, energy efficiencies, and better workflows. Could it also mean a cost savings for future homeowners?
Smaller, More Affordable Housing for the Retiring Baby Boomers
We knew this day would come for the real estate industry – the baby boomers are retiring! We once thought this would mean an influx of retirees seeking out property in high-end retirement communities, but the recession has left many of them trading in their large homes with higher expenses for more economically friendly, low-cost houses. And for a handful of baby boomers in 2018, they will be moving in with their kids to help with childcare, while everyone saves a little more money. For the real estate professional, this might mean a demand for more compact, lower expense living as well as multi-generational homes with dual master bedrooms or in-law suites.
Millennials and Gen Z, and Their Love for All Things Urban
Sure, this isn’t the first time you’ve heard about Millennials changing the housing market, but now Gen Z is emerging as the new demographic to spice things up. The truth is, these two generations have different values than those of the Baby Boomers. They are having children later in life, prefer sustainability and walkability in their home and location, enjoy the cultural benefits of the urban center, and don’t mind embracing the minimalist lifestyle in a smaller space. These generations will be flocking to city urban cores in 2018, and they will need affordable housing. Not only that, their love for gadgets, technology, culture and fine dining will put a demand on retail space for those companies looking to cater to this audience in the urban cores.
While 2017 brought lots of changes, we’re excited for the positive progress that the real estate industry will be making in 2018. It will be all about efficiency, walkability, affordability, and practicality in the new “normal” for real estate! How will you cater to your target market in these new and exciting times?
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