Many experts believe the housing market will slow down, but they don’t expect a crash like the one in 2008. Rising mortgage rates and affordability challenges are expected to cause home prices to decline.
However, HIRI has partnered with Trend Hunter to explore how these trends could impact the future of housing.
Whether it’s the need to save money, limit exposure to pollution or enjoy the convenience of walking to work and running errands within their community, many homeowners seek sustainable housing. This is particularly true of millennials who want to make sure their home not only suits their lifestyle but that it also promotes ecological mindfulness.
To address the current need for sustainable and disaster-proof housing, architects and builders are utilizing different types of green technology. For example, homes are being designed with reversible or modular components, and 3D printing makes it easier to build natural houses that can withstand extreme weather. In addition, new construction methods are helping to lower energy costs and improve home efficiency.
Experts differ in their opinions on how the housing market will perform in 2023. Some predict it will continue to boom, fueled by low borrowing rates and high demand. However, others warn that prices may decline due to a lack of available supply and local economic factors. Regardless of what happens, there is a growing need for more multigenerational housing options. Whether it’s for parents moving in with their adult children or young adults living back with their parents, this trend is expected to continue. To meet this need, developers are designing communities that provide space for multiple generations to coexist comfortably and conveniently.
Several factors, including interest rates, supply-demand dynamics, and affordability, will influence the future of housing. While experts expect a slowdown in the market, they do not anticipate a catastrophic crash like the one in 2008. Rising interest rates will put more pressure on buyers, making it harder to afford mortgages. At the same time, shortages in labour and materials will continue to delay new construction. This will further impact the affordability of homes, as it will increase rents and could cut into savings for buyers trying to buy their first home.
In addition to these trends, the future of housing will be shaped by technology. Innovative technology will become increasingly popular, allowing homeowners to control and monitor their homes through smartphone apps remotely. This technology can also help to save energy by adjusting lighting, heating, and cooling automatically. In the future, homes will be designed to use renewable energy sources, such as solar panels and green roofs.
The housing market will also be impacted by changing demographics. As more people move from rural areas to cities, there will be a demand for affordable urban housing options. As a result, more condominiums and apartment buildings are expected to be built. In addition, more buyers are expected to join with friends or family to purchase homes.
A smart home uses technology to improve functionality and convenience. An intelligent house can automate many functions using built-in sensors and controls, making your home more efficient. This can help you save money and energy, which in turn can reduce your carbon footprint. Newer technologies also tend to be more environmentally friendly than older models. For example, smart thermostats allow you to monitor and adjust your temperature throughout the day based on the time of year or your schedule. At the same time, energy-efficient lighting is more sustainable than traditional bulbs.
With the right builder, you can incorporate smart tech into your custom house to enjoy the benefits of automation and keep up with future technology. For example, an intelligent home system can link your household appliances to your smartphone and allow you to manage them remotely. This includes locking your front door or granting access to guests, turning on and off the lights, monitoring security cameras, and more.
Intelligent home systems can be a great addition to your custom ehomes and help you stay ahead of the curve. Thoughtful home packages are affordable and make integrating various devices into your home easy. In addition, smart tech can make your home more secure and comfortable. For example, you can use an intelligent alarm system to monitor your property or include an innovative sound system connecting with your favourite streaming services.
Diverse Housing Options
A great community includes diverse housing types that offer options for different income levels and lifestyles. But these housing types don’t exist in isolation; they work together to form strong, vibrant neighbourhoods and districts.
Providing more affordable housing options requires a combination of strategies that address supply, demand, and finance. Increasing the supply of affordable homes requires communities to make land available for lower-income residents and to support affordable home building by creating incentives for developers. These incentives can include reducing zoning restrictions, boosting local tax credits for affordable housing development, and offering new mortgage programs to assist low-income homeowners.
Demand for affordable homes is fueled by a lack of choices that are both practical and within reach for young people, families, and seniors who want to live close to amenities such as schools, jobs, and recreation. The housing market is transforming as the generation that came of age during the recession seeks to avoid expensive commutes and live in walkable neighbourhoods where they can connect with their neighbours, co-workers, and friends.
One way to meet this need is to increase the density of housing in urban areas through increased zoning and allowing accessory dwelling units (ADUs). ADUs are small secondary units such as cottages, spaces above garages or in attics, or even single-family homes with an added second unit. These are a cost-effective alternative to new, large-scale multifamily construction and allow communities to add 20 to 70 dwelling units per acre.