With a lot of uncertainty facing the housing market, we’ve got our sights on the future and all that the housing market has to offer this year. Whether you’re looking to buy or sell, we’ve rounded up the housing trends to expect in 2019.
1. Increased Inventory, especially in luxury market
After last winter’s record low of housing inventory, it will slowly pick up after years of limited homes on the market. However, at less than a 7 percent national increase, the modest increment is still a ways off from offering a robust housing inventory. The majority of inventory gains will hit the luxury market in metro and surrounding neighborhoods in California, Connecticut, Washington and Massachusetts as those economies exhibit strong growth and higher salaries.
2. Millennials become #1 buyers
In 2019 Millennials are on target to be the largest group of mortgage owners at 45 percent compared to Baby Boomers at 17 percent and Gen Xers at 37 percent. As older Millennials seek more permanent residences, a trend among this generation leans towards, better housing affordability. This group of home buyers are gravitating to “18-hour cities” and a hybrid of suburban and urban neighborhoods.
3. Unpredictable tax law
The effects of the new tax law still remains to be determined. Taxpayers will find out the new implications of the tax law when going through the income tax process in April 2019. While the new law is set to benefit renters, it’s still unclear how it’ll affect homeowners. Some may face reduced taxes while itemized items may lead to higher taxes which ultimately may detract from renters seeking homeowning opportunities.
The dialogue on sustainability and climate control has trickled into housing and how it affects the interests of homeowners, buyers, investors and construction companies. As the building industry seeks to lower emissions and create sustainable practices, they are more inclined to consider the ethical practices of building homes and incorporating green initiatives.
5. Real estate startups
We’ve witnessed the changes startup companies have driven in other sectors: homesharing sites like Airbnb and Homeaway for hotels/hospitality and ridesharing apps, Uber and Lyft for car services. Real estate is getting its own industry shake up with emerging platforms like Bungalo and Rex, eager to reinvent the home buying and selling process. As we continue to move overwhelmingly in the direction of utilizing technology to revitalize the way we go about our lives this is one trend to keep your eye on for the new year.