Photo by Russ Hendricks
The real estate industry may be one of the oldest and most traditional sectors that exists today. Due to the nature of the product (i.e. buildings), the industry may appear as static and slow to change and adapt, with clearly established leaders.Recently, however, the industry is seeing the emergence of new players, shifting values, and modern trends. Keep reading for the top five trends shaping real estate.
Rise of mid-sized cities
In the coming years, the real estate market will shift toward investing in cities that have historically been overlooked. Though cities like New York and San Francisco will remain powerhouses, smaller and mid-size cities will emerge as key opportunities for urban revitalization. Major businesses — such as Toyota, Apple, and Amazon — have already started to relocate and set up satellite offices in cities like Dallas, Austin, and DC. Similar cities to those mentioned — Miami, Philly, San Diego — are expected to experience economic growth, transit-oriented expansion, and substantial real estate development.
Focus on real estate technology
New real-estate technology (aka “PropTech”) will also disrupt the industry. PropTech is broadly defined as cross-industry technology — construction tech, home selling platforms, virtual tours, property services — used to optimize the way people research, rent, buy, sell, and manage a property.Industry leaders have realized that they can’t compete in the market if they don’t embrace tech and start making investments today. In tandem, more real estate investors are interested in the PropTech sector, keeping a close eye on tech trends, firms, and startups. In fact, MetaProp’s Mid-Year 2018 Global Proptech Confidence Index found that 96 percent of investors planned to make investments in PropTech in 2019 — “up 76 percent from the year before.”
Importance of amenities
In an attempt to stand out to buyers in the competitive housing market, landlords and builders are racking up additional amenities. Homes nowadays don’t sell with simply a gym or a rooftop; instead, buyers are looking for that extra oomph. Real estate agents need to be marketing onsite laundry, home theaters, outdoor patios, balconies, smart TVs, pet-washing stations, and coworking spaces, if available, to catch the eyes of younger, professional buyers.
In response to recent reports on climate change, first-time homebuyers are considering the sustainability of homes on the market. More so than baby boomers, millennials are taking an interest in green and smart home features. Smart thermostats, low-flow plumbing, and solar canopies are just a few examples of emerging trends toward greener homes across the industry.
Coliving, encompassing all the above trends, might be the most market-disrupting product in the real estate industry today. Coliving is a modern form of communal living in which residents get a private bedroom and shared common areas in a furnished home. Coliving is popular in major cities as a means of affordable, accessible, and convenient living.
Common is bringing coliving to urban centers around the country. This includes New York, San Francisco, Los Angeles, Chicago, and more. Within the next three years, we’re undertaking a $300M expansion into cities with high innovative potential, including Philly, Miami, Atlanta, San Diego, and Denver. “We’ve seen a real need for innovative housing solutions in growing, mid-size cities that are facing challenges of rising rents and demographic change,” said Brad Hargreaves, founder and CEO of Common. Though not considered a PropTech startup, Common is unique in that we use PropTech in our leasing process while also creating cutting-edge technology with our in house Dev team. These PropTech systems allow us to improve efficiency in the real estate market, make the leasing experience better for our members, and equip our teams to be better property owners.
In addition to incredible amenities such as free onsite laundry, 24-hour fitness centers, furnished rooftops, and home theaters, Common homes also offer eco-friendly features. Just last year, we announced Common Clinton in Hell’s Kitchen as our greenest project yet, having implemented a custom solar canopy, motion sensor lights, low flow plumbing fixtures, and smart thermostats.
Take a free tour to experience coliving, the leading trend shaping the real estate industry today.