Will the home office be standard? Will buyers have more flexibility?
Thirteen members of the Forbes Real Estate Council share their predictions for construction growth, home affordability, and mortgage interest rates for the long term.
Joseph Edgar, CEO and founder of TenantCloud writes: “What we see now is that the supply is lower than the demand for new homes in the U.S. housing market. One of the reasons for this is the pandemic-related increase in prices for construction/building materials which is slowing down construction growth. Fortunately, this won’t affect the market in the long term as prices are predicted to go down in a few years.”
Certain markets will see increased demand like Toledo, Ohio. “It is one of the few locations around the nation where an investor can find a family home for less than $100,000. Individuals working low-income jobs can still afford to save enough for a down payment and acquire a house,” says Saurabh Shah, Co-founder of InstLend.
Ron Costa, co-founder and principal of The Eighty Two Group, expects the real estate market to continue surging for several reasons. “Housing construction still has not caught up with demand. Desirable neighborhoods do not have enough space to build more housing due to government regulations and NIMBYism. The Fed and the government are continuing to keep interest rates low and extending eviction moratorium to avoid catastrophe.”
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