PwC and The Urban Land Institute released their “Emerging Trends in Real Estate® 2022” report. The report covers the topic of how real estate is recovering from the pandemic. The data comes from almost 1,700 real estate industry experts like investors, fund managers, developers, lenders, brokers, and more. Here are the emerging trends for real estate next year.
Emerging Trend #1: Climate Risks and Responsibility
The report found that 82% of respondents consider environmental, social, and corporate governance (ESG) traits when making investment decisions. A majority view the real estate sector as responsible for climate change and being able to help mitigate impacts and increase resilience to environmental risks.
Emerging Trend #2: Housing Affordability
As we all know, we’re in a seller’s market because of the low inventory of homes paired with the high demand. Housing affordability worsened during the pandemic as we saw home prices and rents increase. And housing production is falling behind, too, meaning there will be no relief for new homes on the market anytime soon. All of this implies housing affordability will continue to decline without help from private-sectors and government intervention.
Emerging Trend #3: Relocation
During the pandemic, people either stayed where they were in hopes of returning to the office one day, or many relocated as they continued to work remotely. But businesses are again delaying in-office attendance or extending their remote work period. This can cause people to want to relocate. One of the most popular real estate locations for relocation was the Sun Belt in metropolitan areas.
Emerging Trend #4: The Top 10 Markets
Labeled as No. 4, Austin, Texas, took place in the top 10 markets for real estate prospectors due to qualities like strong growth, homebuilding outlook, affordability, and job prospects. Austin is fourth after Nashville in No 1., Raleigh/Durham, NC as two, and Phoenix, Arizona as third.
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