From disrupted supply chains to high construction costs learn what is influencing emerging trends in real estate this year.
Real estate, like nearly every aspect of our lives, took plenty of blows during the pandemic. People fled big cities and, freed up by working remotely, clamored for homes in the suburbs. Locked-down families craved more space, landlords fretted over collecting rent from tenants struggling with unemployment, and commercial storefronts and office space sat empty. Now as we look ahead, real estate is considered a bellwether for the future of an economic recovery, population migrations, consumer demand, and more. Roofstock selected 10 emerging real estate trends in 2021, using data from the Emerging Trends in Real Estate 2021 report compiled by PwC and the Urban Land Institute. The trends cover topics such as investment prospects, notable real estate markets, population migration, and the effects of COVID-19 on residential and commercial real estate. The trends in this report are based on interviews and surveys of more than 1,600 people who work in real estate advisory, investing, lending, or real estate development. Trends in real estate are intertwined. Construction costs are high as commodities are expensive, and supply chains are disrupted. Consumers’ shopping habits have altered demand for brick-and-mortar shops, warehouse space, and online goods distribution centers. Rents are soaring, and houses in some places are sold within days, well over the asking prices. Keep reading to see how these elements are influencing emerging trends in real estate this year. As jobs come back across the U.S., people who were renting may find themselves able to take out home loans, adding more buyers to an already competitive market. Some experts have predicted the housing shortage will continue for years before self-correcting. While building slowed during the pandemic, construction costs —both labor and materials—soared. Many of the price rises were a result of worker shortages and disruptions in supply chains for commodities and raw materials. The price of lumber, as one example, rose by more than a third. Costs continue to be high, compounded by a shortage of skilled labor.
