6 Real Estate Trends and Predictions to Watch Out for in 2023
Over the past few years, the real estate industry has experienced a ton of growth. Many analysts predict that this industry will stay on an upward trajectory in the next few years. Whether you are an individual looking to buy a home or a commercial real estate investor, keeping up with real estate trends is important.
A recent study found that the real estate market in the United States is worth nearly $227 billion. If you are ready to unlock your real estate earning potential, it is time to find out more about the trends and predictions for this industry in the coming year.
1. Smart Parking Solutions Will Grow in Popularity
One of the fastest-growing industries within major cities is privately-owned parking spaces. Many entrepreneurs have jumped into this space because it is both lucrative and in high demand. The best tool developers, property managers and entrepreneurs can have to manage their privately owned parking spaces is ParqEx.
The technology developed by ParqEx helps to connect owners of private parking spots (individuals, property managers, HOAs, businesses, etc.) to people looking for parking. With the power of this technology, parking owners can generate supplemental income with minimal effort. The support team provided by ParqEx takes charge and handles everything from listing the parking spaces to enforcing them.
2. Remote Work Will Continue to Have an Effect on Commercial Real Estate
During the pandemic, more businesses than ever before started using remote workers. As things around the world slowly get back to normal, people working remotely have continued to do so. While working from home is a great thing for workers, it has negatively affected the commercial real estate industry.
The businesses who have moved to a remote work model have no need for a commercial workspace. Many analysts predict that the commercial real estate industry will continue to lessen in value in the coming year.
3. The Digital House-Hunting Revolution
In the past, people found houses for sale in their area with the help of print media. These days, most people start their search for the perfect home online. Homebuyers have found that online listings feature more details. These details allow a person to decide whether or not they want to invest in the property in question.
Attention-grabbing online home/commercial property listings features things like virtual staging, 3D tours and drone videos. As the world at large continues to move into the digital space, online property listing websites will only grow in popularity in the years to come.
4. Home Prices Will Continue to Rise
The demand for single-family homes in the United States has grown substantially in the past two years. This increased need for single-family properties has resulted in home prices skyrocketing. Right after the pandemic, home prices in the United States declined.
Since then, this trend has definitely been reversed. The median price for homes in the United States has increased by nearly 15 percent in the past year. Predictions are that 2023 will be a great time for real estate sellers.
The price of American homes continue to rise due to an increased amount of home improvement spending. Homeowners that invest in things like black cabinetry and energy-efficient appliances can command more for their properties.
5. Rental Property Markets In Larger Cities Will Continue to Decline
The unrest in the major cities in the United States was evident throughout the pandemic. This unrest motivated many people to move out of major metropolitan areas. Many of these individuals sought out properties for rent in the suburbs. This led to rental property markets in large cities declining rapidly.
There is no denying that this trend will continue in 2023. If you are looking to hit the ground running with real estate investments, buying rental properties in the suburbs is probably a good idea.
6. The Number of Individual Real Estate Investors Will Shrink in 2023
Another trend that you are sure to see in 2023 is fewer individual real estate investors. Large hedge funds and corporations are buying up real estate all over the United States. This means that individual investors are having a hard time gaining a competitive edge.
One of the best things individual investors can do is to put money into a real estate investment trust. With this investment, you can get a good return without having to directly manage a rental property.
Now that you know about the real estate trends for 2023, it is time to plan out your investment strategy.
Guest Author: Wendy Dessler
It’s always important to keep an eye out for the newest trends in the real estate market. With these 6 real estate trends and predictions to watch out for in 2023, we hope you can benefit. Also, for those seeking more information on ParqEx & how our proprietary parking technology can help your property with parking, tenant management, guest parking, enforcement, access control, and security, don’t hesitate to reach out. Book a demo with us today!