Real Estate Trends

Real estate is a dynamic entity. The market ebbs, flows, and evolves—it often seems to have a life of its own! Below are a few aspects of the current market in this unprecedented time that are worthy of attention.

Homeowners Are More Tied to Their Home Than Ever

In a recent survey by Unison, 70% of homeowners reported feeling emotionally attached to their home. 83% of those surveyed said that their home has kept them safe during the COVID-19 pandemic. 64% shared that living through a pandemic has made their home more important to them than ever. And 91% said that they feel secure, stable, or successful owning a home. These findings show that this last year has made homeowners appreciate what they have more than ever.

Multigenerational Housing is Gaining Momentum

A multigenerational household is one with two or more adult generations living under one roof. In 2020, 12% of homes sold were multigenerational. This amount increased to 15% in Spring 2020. 28% of buyers purchased to accommodate adult children living at home and 25% purchased to accommodate aging parents. How we live and how we think of space is definitely evolving.

There are many reasons noted as benefits to having a multigenerational household. For one, there is combined buying power, which equals a higher homebuying budget. For many, there is the benefit of shared caregiving duties, be it for the younger or older members of the family. Combining buying power also can mean the ability to purchase more space overall. And many families find that they have more quality time together with family members than they would if they did not live together.

Homeownership Is Seen as an Excellent Investment

The Federal Reserve Bank of New York reported that 93.3% of Americans believe that buying a home is definitely or probably a better investment than buying stocks (39.5% = probably and 53.8% = definitely).

Several reasons were noted by those surveyed. The top three reasons being: housing prices are less volatile; homeownership provides stability; and homeownership often has better tax implications. A recent survey of consumer finances study released by the Federal Reserve purports that the net worth of homeowners is 40 times greater than that of renters. A Liberty Street Economics blog summarized the situation:

“Housing represents the largest asset owned by most households and is a major means of wealth accumulation, particularly for the middle class.”

As we can see by this snapshot in time, the dynamic entity that is the real estate market currently has some intriguing and life-impacting aspects.

Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 17 years. If you have a specific real estate question you wish to see addressed, contact Debbie at debbieaustin@kw.com or debbieaustingroup.com.