Published on May 7th, 2021 | by Bibhuranjan0
Nobul CEO Regan McGee weighs 2022 real estate trends
While no one can predict the future, real estate leaders have been hard at work trying to determine the next trends for 2022.
As the industry continues to feel the effects from the COVID-19 pandemic, Regan McGee uses his experience leading Nobul — a digital marketplace that connects home buyers and sellers to real estate agents who bid to represent them — to pinpoint likely real estate trends and what you can learn from them.
A Housing High
The COVID-19 pandemic has significantly impacted the real estate industry.
With health, security, and remote work ranking as some of the top concerns for consumers in 2021, it’s clear that these elements will carry into 2022 and beyond.
At the start of the pandemic, home-ownership rates in the United States were at 64.2 percent. Just a few months later, they rose to 67.4 percent. While the increase may look small numerically, this is a large jump in just a few months.
Why is this growth happening so quickly?
It could be a result of consumers needing home offices, larger spaces, and access to outdoor amenities during this time of quarantine and stay-at-home orders. This spike could also be attributed to the extremely low mortgage rates we’ve seen as a result of the pandemic.
Although this increase in home-ownership may be directly related to the pandemic now, the rise will only continue into 2022, McGee said.
“We know this growth will continue into 2022 but we should also be careful to watch a few key factors,” said Regan McGee, CEO and Founder of Nobul. “The pandemic has shifted so many industries, including the lumber industry, which is experiencing sky-high prices right now. While this hasn’t impacted the ‘housing high’ yet, we know we need to watch the impact of this on the real estate industry in 2022.”
Second-tier cities are on the rise.
Recently, residents are moving out of the big cities and relocating to smaller, more suburban, local areas.
With a new focus on smaller, local real estate markets, it’s clear that second-tier cities will be top contenders for both buyers and sellers in 2022.
Home-buyers have never craved rooftop terraces and outdoor areas more than during the pandemic.
The desire for these types of amenities will only continue to be a driving force in the real estate industry.
In 2018, 86 percent of new apartments offered amenities like swimming pools to their residents.
The competition has always been tough in the apartment real estate game, but the amenities will be key to sealing the deal moving forward.
Real-Time Real Estate
We are all familiar with Zillow and Redfin by now. But looking into 2022, those two platforms are the tip of the iceberg.
Real estate experts are predicting that mobile closings will be a much more common concept.
“We have the capability today to make closing on a home a secure, cost-efficient and virtual process — I say this with certainty as the CEO of a firm that enables exactly this,” wrote Nate Baker, the CEO of Qualia, a digital real estate closing platform. “And with all of the pieces in place to allow people to buy a home completely online, business practices across the real estate industry must catch up with the technology.”
And while this concept may cater to millennials, everyone can reap the rewards.
This digital transformation means no more waiting around in your real estate agent’s office for three hours while you print and sign document after document.
Here’s to another year of a constantly growing, evolving, and improving real estate industry.
Cover Photo by Precondo CA on Unsplash