Builders will focus on more affordable price points
Builders have been faced with higher land costs, limited labor, and concerns about the demand of the entry-level market. As such, they have shifted to constructing more higher-priced homes, which has caused new-home prices to rise significantly faster than existing-home prices. They likely will shift to more affordable product to cater to the entry-level buyers in the upcoming months.
Demand for amenity-rich suburbs
As some buyers get priced out of city centers, they're looking at suburban housing – but in a different light than in the past. "People's preferences have started to change," says Svenja Gudell, Zillow's chief economist. "They're searching for amenity-rich suburbs choosing this type of housing over the cul-de-sac in the suburbs." These amenities might include easy access to grocery stores, dry cleaners and other conveniences near home.
Millennials trading up
Florida rental properties remain in high demand and rates will continue to increase. This means that, in most cases, it will be cheaper to purchase a home and secure a steady mortgage payment than to rent. Pair this with the fact that the job market has been steadily improving, and you can see why millennials made up almost 2 billion dollars in sales last year.
Rent to go up even higher
Rental costs are skyrocketing, and the costs are likely to only go up in the new year. More than 85 percent of the nation’s markets have rents that exceed 30 percent of the income of renting households. Because of this, it is more affordable to buy in more than three-quarters of the U.S.
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