You thought you knew everything about real estate, didn’t you? You thought you had all the trends of 2024 figured out, neatly tucked into your pocket, ready to whip out at your next dinner party. Well, buckle up, because we’re about to shatter your illusions. The real estate world is a wild, unpredictable beast, and just when you think you’ve tamed it, it throws you a curveball. So, let’s see if we can’t fish out some pearls of wisdom, shall we?
The Rise of the Homebody
With interest rates for a 30-year fixed mortgage still high, home prices holding steady and inventory still low, many homeowners plan to stay put, optimizing or expanding their existing square footage. Homeowners are favoring sustainable materials sourced locally to pare carbon footprints and support local businesses. This trend is especially true for millennials and Generation Z.
Architectural firms are designing facilities for specialized needs, such as The Cordwainer, which will have private and double rooms and a host of amenities including a two-story atrium, performance center, game room to stimulate the brain, and memory care garden.
The Shrinking Home
Currently, homes are shrinking in size, with the median for single-family houses at 2,261 square feet and the mean square footage of new single-family homes down to 2,469, according to the National Association of Home Builders. One of the most popular styles is the ranch house. The style also offers the flexibility to be opened up indoors and to the outdoors.
Attached townhomes and stacked flats have gained popularity due to the need for smaller square footage in dense sites. The main reasons for smaller single-family homes are high mortgage rates and lifestyle changes that favor fewer bedrooms.
The Expanding Apartment
At the same time that single-family homes are shrinking, apartments are increasing from an average of 870 square feet before the pandemic to closer to 1,000 square feet. Many renters want more space to work from home and favor more bedrooms, if they can afford.
The Sustainable Home
Sustainability isn’t going anywhere. In fact, it’s growing in popularity, and received a boost in January 2023, when the Department of Energy announced federally backed incentives to help builders make DOE-certified Zero Energy Ready Homes their standard. An example of a builder focused on both energy efficiency and lower construction waste is Netze Homes, based outside Dallas, which uses steel that it recycles from cars.
The Luxury Spec Home
The demand for spec luxury houses and townhomes continues, particularly in South Florida. Waterfront sites are particularly desirable. Favored features include a modern design with flat roofs, wood detailing, a pool, an open plan and beautiful kitchens.
The Amenity-Rich Building
People are still looking for features in smaller buildings. Units have terraces, shared parking, bike storage, “Zoom rooms” for online meetings and a ground-level coffee shop. Other popular amenities are a grocery store, pet trail, package center, and lounge and lobby for interaction—sometimes with classes—and electric vehicle charging stations.
The Heart of the Home
The kitchen remains the heart of the house with old trends in force along with new ones gaining traction. Induction cooktops continue to increase in number, in part because new homebuilding regulations in certain municipalities require phasing out gas ranges for safety and sustainability.
The Conservation Community
Whether in communities or private backyards, homeowners want to conserve ecosystems. In smaller communities, even in urban settings, variations of the conservation community or “agrihood,” like Pendergrast Farm in Atlanta, are emerging.
The Neutral Palette
Neutral colors are more popular. They are a safe choice, offer the opportunity to decorate a home with more emphasis on landscaping, give homeowners the chance to market their home without having to repaint and are not the subdued hues of the past.
2024 Real Estate Forecast
So, there you have it, the real estate trends of 2024 that you didn’t know you needed to know. Now, armed with this knowledge, you can make better, more informed decisions. Whether you’re a homeowner, a renter, a builder, or just a curious bystander, these trends offer insights into the future of real estate. So, go forth, and conquer the real estate world!
