As 2018 winds down, it’s time to start looking ahead to the new year. In the past 12 months, the residential real estate market experienced strong demand, an influx of new construction and rising home prices. Given these positive trends, what can we expect in 2019? Take a look at my top three predictions for the new year.
1. Urban real estate attracts new residents
An urbanization trend has taken root in major cities across the U.S. More suburban residents are trading in their big houses with a backyard and two-car garage, and migrating to cities where they can “have it all” and enjoy service-filled and amenity-packed living right outside their doors. Since 2010, the urban rental inventory across major U.S. cities has increased by 32%, while the suburbs recorded a 16% uptick, the first time this has happened in decades. To accommodate this demand, it is estimated that by 2020, annual multifamily completions will average 300,000 to 335,000 units.