The start of a new year usually consists of goal setting, change, and re-grouping. This is no different for the real estate industry. 2019 will cater to a new group of buyers, see new advances in new construction and keep up with the ever-changing world of technology. If you’re wondering how all of this will be accomplished, read on.
A new age of home-buyers is here. With more and more millennial’s aging into their golden 30’s they are on the prowl for a place to call home. According to Realtor.com, millennial’s account for about 49% of mortgages in the U.S. With the rising average home price slowing down, millennial’s are saving up to become first-time home buyers. With that being said, could a new age of buyers bring new competition to the real estate industry? Maybe. According to Realtor.com’s Danielle Hale, the “number of homes for sale is increasing, which is an improvement for buyers” however, “ the majority of new inventory is focused in the mid- to higher-end price tier, not entry-level.” USA Today says this may or may not be an obstacle for the millennial buyer as it seems they have opted to stay with their parents longer in order to splurge on their first home. They have waited and saved and may enter the market at prices above the traditional first time home buyer. For this reason, they will be more demanding of builders to provide additional features.
New construction is projected to increase by seven percent in 2019. According to Joe Sesso, Author and National Speaker for Homes.com Builders are busy building and consumers are thinking of a master plan (pun intended) to find their dream home. With the average new construction price sitting in the high $200’s to upper $300’s builders are working hard to display their detailed craftsmanship and stand out from the normal cookie cutter home. On the other hand, buyers are also looking for more bang for their buck, and more included features. Breakfast nooks, extended ceilings, glass/mosaic backsplashes, and crazy closet space are just a few of the hottest trends in new construction right now. Some builders are pulling out the big guns with design centers that let you choose every detail of your new home.
Technological advances are entering new construction. There’s no doubt we are living in the digital age. There are apps that deliver groceries to your door to virtual tours of the latest and greatest of new construction. The world is evolving and the real estate industry is no different. There’s been a focus on building low-maintenance lifestyles that consist of “smart home technology” and anything that screams convenience (Alexa, turn off the lights). This has greatly impacted what builders are offering as far as upgrades and add-ons. According to Reuters.com, the smart home market is expected to reach a value of 150.6 billion by 2023. Before we know it, the days of waking up to adjust the thermostat may be a memory from the distant past.
With buyer expectations growing, and builders looking to stand out, 2019 is shaping up to be a big year of changes in the new construction industry.