With 2012 coming to a close, experts are predicting how the real estate industry will fare in 2013.
Chicago—With 2012 coming to a close, experts are predicting how the real estate industry will fare in 2013.
The economy is recovering from the recession, which will lead to more housing starts. According to the Commerce Department, there has been the most new construction of homes in October 2012 since July 2008.
Additionally, custom-home activity, which has slowed recently, will begin to see a pick up, and owners will look toward luxury finishes.
However, while home sales are expected to gain more traction, industry insiders still believe that the multifamily industry will remain strong.
“Renting is a trend that is here to stay,” Randy Fifield, vice chairman of Fifield Companies, tells MHN.
T.J. Rubin, managing broker of Fulton Grace Realty, echoes this sentiment.
Renting will continue to appeal to Gen Y, but the other generations, who traditionally were homeowners, will turn more toward multifamily options.
With that flexibility comes the ability to live alone. Developers are taking note of this desire, and with that, apartment sizes will skew smaller than in previous years.
Industry experts are also predicting that design will be an important element in the upcoming year. The popularity of design websites such as Pinterest and Houzz, show no signs of waning.
And, while homeownership will start to appeal to more people than in the past several years, renting will remain ideal for those still afraid of the obligation that homeownership entails.