SEATTLE, Nov. 15, 2017 /PRNewswire/ -- Those hoping
for relief from the ongoing inventory crisis won't find it in
2018.
Next year, current homeowners will look to remodel their homes
rather than sell, further limiting inventory, and with limited
space to add new homes in city centers, suburban sprawl will make a
return. Newly built homes will be designed with both millennials
and aging adults in mind, as both generations are looking for
similar features.
Zillow's 2018 Housing Predictions:
Inventory shortages will continue to impact the housing
market: The lack of homes for sale will remain a top concern in
2018, playing a significant role in rising home prices. Inventory
has been falling since 2011, and there are 12 percent fewer homes
for sale than there were a year agoi. This will be
particularly difficult for first-time homebuyers who don't have the
capital from a previous home sale to help with the down payment,
especially in hot markets like Seattle and San Jose.
Homeowners will choose to remodel instead of sell:
Today's homeowners, wary of becoming buyers in such a limited
market, will choose to remodel their homes instead of moving,
worsening the inventory crisis.
Baby Boomers and millennials will drive home design:
Livable design features that appeal to both millennials and Baby
Boomers will be a focus in new construction. Homes will be designed
to make living simple and comfortable – for example, with wide
hallways that can accommodate both strollers and wheelchairs.
More entry-level homes: Builders will respond to the
demand created by more first-time buyers entering the market and
increase new construction of entry-level homes.
Suburban sprawl will return: The suburbs will expand as
the cost of land and construction reaches a tipping point in urban
areas. Urban living is popular among those looking for close access
to job centers and cultural amenities, but building costs and
regulations will lead to increased development in the suburbs.
Home price growth will slow: Home prices will grow 4.1
percent, according to more than 100 housing experts and economists
surveyed in the latest Zillow® Home Price Expectations Survey. Home
values are currently growing at 6.9 percent annually.
Statement from Zillow Chief Economist Dr. Svenja Gudell:
"We're on the other side of the housing recovery, and the real
estate market looks quite different than it did 15 or even five
years ago. We have a huge generation entering the market. They
really want to be homeowners, and they're faced with an inventory
crisis that leaves them with few options. Builders won't ignore
this hungry market, and we'll start to see a rise in new
construction at the more affordable end, instead of all the luxury
buildings we've seen lately. However, builders are also facing high
costs, so instead of adding density in cities where zoning laws and
land costs often preclude affordable building, we'll see the
suburbs grow and expand outward.
"In most markets around the country, housing has become a game
of musical chairs, and nobody wants to be the last one without a
seat. Homeowners who are looking for a change will turn to
remodeling and redecorating instead of selling their home and
facing the challenges of being a buyer in a sellers' market.
"New homes will be designed to be particularly appealing to the
millennial and Boomer generations. Wide hallways can make it easier
to move in, as well as make it easier to navigate a stroller or
wheelchair through the halls. Large drawers will replace cabinets,
making it easier to access everyday items that previously were hard
to reach."
Zillow
Zillow is the leading real estate and rental
marketplace dedicated to empowering consumers with data,
inspiration and knowledge around the place they call home, and
connecting them with the best local professionals who can help. In
addition, Zillow operates an industry-leading economics and
analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of
economists and data analysts produce extensive housing data and
research covering more than 450 markets at Zillow Real Estate
Research. Zillow also sponsors the quarterly Zillow Home Price
Expectations Survey, which asks more than 100 leading economists,
real estate experts and investment and market strategists to
predict the path of the Zillow Home Value Index over the next five
years. Launched in 2006, Zillow is owned and operated by Zillow
Group, Inc. (NASDAQ:Z and ZG), and headquartered in Seattle.
Zillow is a registered trademark of Zillow, Inc.
i
https://www.zillow.com/research/september-2017-market-report-17073/
View original
content:http://www.prnewswire.com/news-releases/zillow-predicts-suburban-sprawl-to-return-in-2018-300556180.html
SOURCE Zillow