2021 Real Estate Market Trends From Brian Buffini’s Bold Predictions
In my annual Bold Predictions broadcast, I evaluate the most up-to-date data and research by top analysts and economists, such as NAR Chief Economist Dr. Lawrence Yun, to distill current market trends and predict what lies ahead in our industry. In the past, I’ve accurately predicted the Great Recession, the impending automation of the industry and the inventory shortage. After the unprecedented events of 2020, this year I’m forecasting three specific dynamics that will affect the market in 2021:
Decentralization
Society is currently experiencing decentralization, with the movement of people from cities into suburbs and rural areas. According to “The Washington Post,” the pandemic has people trading traffic for chickens! After 35 years in this industry, I have learned to always watch how the renters are behaving and what they are doing. With a 30-day lease, renters are generally far more fluid, which makes them a leading indicator of what’s about to happen in the marketplace. Right now, rents are rising in some rural areas countrywide, such as Memphis and Phoenix, and declining in more urban districts and major cities, like New York and San Francisco.
The Changing Face of Relocation
Research shows that between 14 to 23 million people are now planning to relocate due to the ability to work remotely. More than 20% of those who intend to make a move currently live in a major city, and over 50 percent of that number plan to relocate more than two hours away from their present location. As an agent, this dynamic will affect how you do business. Now, more than ever, you will need to build a network of fellow agents locally, regionally and nationally with whom you can exchange referrals. The Buffini Referral Network™ is a powerful tool for sending and receiving referrals and a way to create a database of like-minded business owners and establish new relationships across the United States and Canada.
Upsizing
Bigger homes may have been falling out of favor in the recent past but, during the pandemic, many people realized they wanted more space with room for a home office or even a classroom. One group really impacting this dynamic is millennials. A large number of millennials who moved back to their parents’ house because of the pandemic are now looking for a home to buy, with many of them foregoing starter homes in favor of larger or more upscale properties in the suburbs. With family often lending a hand with down payments, there will be even more competition in this slice of the market.
For the next two to five years, there will be fundamental changes to how and where people live in this country, and these changes will show up first in real estate. To learn more, listen to the latest episode of “It’s a Good Life” where you can also hear Dr. Lawrence Yun’s powerful insights into the 2021 market and download your free real estate report.
Eric
