The housing affordability gap is widening for some consumers due to rising rent prices and the effects the pandemic has caused. The demand for apartments and single-family homes will remain one of the strongest sectors in 2022. The sale of single-family homes, condominiums, and build on your own lot will be the top choice for families and couples.
Many buyers will consider climate change as an important part of choosing a location to live in. This means extreme weather conditions will deter buyers from buying in certain geographic areas. High wages will keep the real estate market strong despite the struggle for some consumers. Millennials ages 26-35 years buying their first home are the strongest market for real estate in 2022. Many will consider the build on your own lot option.
Low Interest Rates Still Pushing Home Sales
Currently, low-interest rates are driving a highly active real estate market for buyers and many families are buying homes at this time. This year we expect that the interest rates will go up and sales will slow somewhat. We may see fewer homes for sale on the market than last year. The luxury market will continue to be strong and continue to grow and increase in value. The new work-at-home lifestyle has left many consumers with the ability to work and live in the area that they want. Many parents are using the equity in their homes to help their grown children get mortgages and some homeowners sell to move away from urban areas. Many realtors will use technology as the main tool in the buying process.
Single Family Home and Multi-Family Housing Construction Continues
In 2018, over 840,000 single family homes have been built. Single-family homes being built should continue into 2022 and many consumers like the build on your own lot option. There will be more development of multi-family units to address the widening gap of housing affordability for some sectors. Some single-family units will be built for rental property. Multi-family housing units will continue to grow in 2022 because of middle-income families and affordability. They will build to supply comforts that working from home requires. Workforce apartments are new housing options for families with teachers, government workers, and retail clerks that seek mid-income rentals.
Contact your local realtor to learn more about single-family homes, build on your own lot, or multi-family housing, depending on your needs. They will work with you to help you find the best type of property or rental to meet your needs.