2018 Real Estate Trends You Should Know

                                       2018 Real Estate Trends You Should Know

The real estate market lives in perpetual motion, shifting and adapting to the current market trends. Agents need to look ahead to stay relevant in this ever-changing market. As 2018 picks up steam, that market is beginning to take shape. Buyers are on the hunt, and sellers are looking to move on. To help agents stay ahead of the curve, we put together a list of some of 2018’s expected trends in real estate, including buyers taking control, millennials moving on, potential mortgage rate hikes, and more.

Co-Living/Communal Spaces

Expect to see an increase in demand for communal spaces that enable multifamily co-living. This could manifest itself into homes that accommodate multiple families sharing the same communal spaces, or a push by buyers or renters to move into apartment buildings that feature these kinds of spaces.

Airbnb, Anyone?

2018 will see a continued rise in the demand for short-term rental spaces. Owners of large properties stand to benefit, as will single-family units with spare rooms. You can also expect to see more people renting out their entire vacation homes to families looking to get away. Here are some short-term rental ordinance to review for Davidson County.

Tiny Houses

Expect more people to downsize as developers build more living spaces that take up less real estate in over-packed urban locations. Micro units, homes that are rooms as small as 200 square feet, are becoming popular, coupled with large communal spaces. This trend is just starting to take hold, and looks to continue into 2018 and beyond.

Return of the Investor

The negative views toward those investing in real estate to make a living have started to fade. At the same time, larger entities are entering this market. Expect to see more homeowners entertaining offers from investors while they look at offers from buyers.

Millennials Move Out

They won’t live in their parents’ homes forever. Expect to see a new wave of buyers from this oft-misunderstood generation. This year could see them taking advantage of the tiny home movement, investing in real estate, or joining forces with friends and family to expand on a co-living situation.

Buyers’ Market

We will see a dip in home-price appreciation in 2018, as projections predict home prices to increase only 4.1 percent after two straight years above 6 percent. One factor contributing to this is an influx of new single-family unit stock, potentially increasing by 8 percent by the end of 2018. This is a welcome relief to buyers in a market that’s been dominated by baby boomers staying in their homes, investors seeing huge returns on rental properties they bought in the bubble burst, and home builders veering toward luxury home builds.

Why the Tennessee Population Is Booming

                                         Why the Tennessee Population Is Booming

Tennessee is going through a major growth period right now, thanks to plenty of job opportunities and the low cost of living. This combination is making the state one of the best places in the country to live, and the state has the growth to prove it. Tennessee’s major metro areas, such as Nashville, are going through unprecedented development right now; currently about 86 people a day move to middle Tennessee.

Here are a couple of trends that are impacting population growth in Tennessee.

Home Sales Are Surging and Costs Could Rise

According to the Tennessee Housing Development Agency, in 2015 the state saw its fourth consecutive year of solid growth. That year, 87,681 homes in the state were sold. Compared to many parts of the nation, this was excellent growth. Most of the expansion and sales are happening in Tennessee’s major cities. Music City has quickly become one of the hottest metro areas in the nation. However, with high demand comes high prices, and homebuyers and renters worry about a lack of affordability if the growth continues at this rate.

Nashville Is Growing Rapidly

Watch out New York City, Nashville is quickly becoming one of the top cities for young professionals. In 2016, the city was named the third hottest housing market in the nation, sitting just behind Seattle, Washington, and Portland, Oregon.

It’s not surprising that Nashville is getting so much attention with its vibrant culture, music scene, and low cost of living. In fact, The Tennessean reported that Nashville ranks sixth in the nation among top cities for property investment in 2017. New businesses are popping up every day, because the cost of doing business in Nashville is 6 percent less than average. In 2014, renter household growth outpaced the construction of rental units, creating high demand for housing in the area.

Low Cost of Housing, Doing Business

The secret recipe of low-cost housing and low cost of doing business created a booming market that’s encouraging new college grads to stay, and pulling in others from more expensive areas. The low cost of living is evident in housing prices. The median housing cost in the Nashville area is $225,000, 7 percent lower than the national median of $243,000.

As the millennial generation gains footing, demographics and housing patterns across the nation are evolving and developing. So far, this has been great news for Tennessee, and we hope these trends for growth continue into 2018 and beyond!