Companies and organizations around the world are busting out their predictions and expected popular trends for 2021 before January ends.
In the U.S., Zillow released the results of a new survey run by economists and real estate experts that shows Austin, Texas as the predicted biggest housing market for 2021, effectively replacing coastal metros.
The U.S. market is known for its expensive coastal regions when it comes to popular moving destinations. The results of this survey are proving that wrong as more affordable metros are replacing luxurious beach towns as the most attractive moving destinations.
Austin is followed by Phoenix, AZ, Nashville, TN, Tampa, FL, and Denver, CO.
The consensus: These affordable metro markets are proving to the populace that they’re taking the pandemic more seriously than other markets in the country, with vaccine roll-outs and better treatment for patients. Other attractive aspects of these metros include sustained strength for first-time millennial buyers, which was a driving force in 2020 and is predicting to continue in 2021.
This is the second year in a row Austin was predicted as being the hottest market in the real estate sector.
In Italy, the annual Re Italy Forum, an event showcasing new trends and innovations for the real estate sector, took place last week. At the event, Luca Dondi, Nomisma CEO, Roberto Anedda, Mutuionline Group Vice President, Mario Breglia, President Scenari Immobiliari, and Vincenzo Albanese, President Sigest, were in attendance.
Breglia commented at the event that he is expecting a substantial rebound for the sector in 2021, stating that consumers were able to work on their own personal savings this past year and that could mean big real estate transactions for 2021.
Anedda explained that the pandemic lowered prices at a national level which would motivated consumers to buy more without the fear of long-term consequences when it comes to debt.
The consensus: Italians are gaining the savings towards moving and purchasing a first home. Mortgage rates are lower than ever, and the average selling price is low on a national level.
In France, the capital city is seeing two very different trends when it comes to rental prices. SeLoger’s LPI Barometer recorded pricer per m² in Paris saw a 5.4% increase year-over-year while rent prices in the capital city dropped 1% year-over-year. France is seeing a similar issue the States saw in 2020- demand is high but inventory can’t keep up. Short-term rental listings in the country have also turned into long-term listings as lockdown ordinances have come and gone, effectively halting the travel industry. Because of this, pre-furnished rental listings are falling slightly less than their non-furnished counterparts.
The consensus: Parisians, on average, are more inclined to rent within city limits than own, and rental prices are predicted to continue increasing in 2021.
The biggest trend prediction for 2021, however, seems to be more investment in proptech to keep up with the ever-changing demands of consumers around the world. A number of big names, including REA Group in Australia and PropertyGuru in Malaysia, have released their own proptech prediction reports, all pointing towards the growing importance of digitizing the real estate industry as quickly as possible. Those who set up their forward-thinking innovations first will surely catch the attention of home hunters quickly and more efficiently.