The real estate industry is constantly in flux. Changes to the housing market rise are closely tied to the global economy, and as those prices change, so does the entire real estate industry.
In the last ten years, we’ve seen a slew of changes to the way real estate works. A real estate agent from 2013 time-traveling to now wouldn’t recognize the industry as it is today.
The industry hasn’t achieved its final or perfect form. It never will. We’re currently seeing a real estate industry with high mortgage rates that leans heavily on tech advancements. That includes VR, AI, and smart home implementations. Ongoing shifts ultimately change how you can run your business as a real estate agent.
So, where, then, are we going in the next decade? No one can predict such things with absolute certainty. No “Homestradamus” exists out there who can peer into the future. But we can make predictions based on data. Looking hard enough at today’s real estate landscape, you can find the blueprints for tomorrow’s industry buried within.
This article will walk you through several emerging trends that’ll ultimately change the real estate landscape over the next ten years.
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A decade ago, the real estate industry emerged from the Great Recession, and mortgage rates were generally low. Agents were making money again, and a shift in sellers’ perceptions was starting to see sales based on emotion over price.
From a tech standpoint, we saw increased adoption of social media as a marketing tool. Agents found it easier to forge connections with potential clients through platforms like Facebook. Alongside this, real estate software development services gained traction, providing tailored solutions to streamline various processes, from customer relationship management to transaction management. Additionally, warehouse management systems and yard management solutions for resource tracking soared.
As the real estate industry continually evolves, tools like residential estimate software become crucial in expediting and simplifying construction processes for those looking to modernize their operations.
These advancements opened up the real estate world. They made adopting smartphones and social media profiles an absolute necessity for anyone trying to remain competitive. Real estate video marketing emerged as a powerful tool during this period, allowing agents to create engaging property tours and informative content that resonated with buyers. We also saw the beginning of artificial intelligence and AR/VR adoption for realtors.
Things were looking up for the housing market until the unexpected occurred. That came in the form of the Covid-19 pandemic. Realtors suddenly had to contend with surging prices and a lack of inventory. That created a hot market in the short term, with sales going through within days or even hours. Many times prices rose well above asking.
However, once the Federal Reserve started to scale back pandemic relief programs, mortgage interest rates began to rise. The average 30-year fixed mortgage rate currently sits above 8%.
Within the realm of rental property accounting, this scenario isn’t favorable for realtors aiming to sell properties, as potential buyers disappear and a growing number opt for the renting route as the wiser choice.
To efficiently manage the growing rental demands, adopting property management software can streamline operations and help landlords and property managers stay organized as the market shifts towards renting.
On top of that, those emerging social media platforms became crowded battlegrounds. Every agent is vying for the attention of the same shrinking pool of buyers. In this environment, mastering real estate SEO becomes crucial for agents to stand out and attract potential clients organically.
Is there hope on the horizon? What tech advancements will help make a real estate agent’s life easier over the next ten years?
Read on to find out.
In the next ten years, the real estate industry could see a ton of change — some good and some bad. However, there’s still plenty of opportunity for successful real estate professionals who prepare themselves to embrace the positives and overcome the negatives.
In the short future, many believe home buying market prices will normalize.
According to CoreLogic, we can expect to see prices increase at an average annual rate of 3.1% over the next few years. That’s down from the 5.5% the industry endured between the beginning of 2022 and 2023.
That means while pricing will continue to rise year over year, it won’t do so with the explosive growth we’ve seen recently. That could be great news for real estate professionals, as it means first-time buyers will start to poke their heads out and express an interest in purchasing again.
We’re seeing an explosion of VR and AR tech in real estate. That’s revolutionized the way real estate agents show properties. But we’ll see a digital real estate sales boom over the next decade.
The Metaverse is a virtual universe that allows users to interact with one another and brands through a VR headset. Users can also purchase plots of “land” within this digital space that belong solely to them. They can do whatever they want with this space, like building a virtual house. In this place, they can host friends, hold parties, or just relax while unplugged from the burdens of life.
This digital land is selling for big money. Metaverse real estate sells for an average of $300,000, which is near the average US home price in 2023. The most expensive Metaverse real estate deal was over $4 million.
Imagine you are managing physical properties, like handling Airbnb management in London—only now, you’re overseeing virtual properties in the Metaverse. The need for Metaverse real estate agents to manage and facilitate these digital property deals is growing rapidly. By familiarizing yourself with Metaverse tech, you can join this trend and make some serious money in the years ahead.
Remember, there’s no need for any certification or licensure (yet), so competition in the Metaverse will be even more fierce.
Most realtors run their own shows. That can quickly become a draining and lonely experience. While artificial intelligence can’t solve the loneliness problem, it’ll continue to be a force for realtors worldwide.
For starters, you’ll be able to have a virtual assistant that can handle your schedule and automate your tasks on a grader scale. AI will essentially be able to run your entire day. That includes content marketing, appointment setting, customer service, data gathering and data capture.
Machine learning is getting more advanced by the day, so AI is already becoming more capable of mimicking human conversations. Utilizing AI as a 24/7 customer service rep can help you field questions and schedule meetings when you’re not around, seamlessly managed through integrated cloud contact center software.
As machine learning advances, AI is poised to revolutionize lead generation in the real estate industry. By leveraging ERP AI-powered chatbots capable of mimicking human conversations, real estate agencies can engage potential clients around the clock, providing personalized assistance and guiding them through the property search process. Integrated with platforms like immoscout24.ch, AI-driven systems can efficiently match buyers with suitable properties, streamlining the lead generation process and enhancing customer satisfaction.
Imagine someone contacts your social media page looking to set up an appointment for an apartment for rent in Miami. The AI can answer them, fielding their questions with smooth and accurate answers delivered in the proper tone. It’ll also be able to examine your calendar and create meetings for you based on the availability you’ve set.
Your AI solution will also compile data. That means it’ll present your most crucial data analytics in an easy-to-understand way. You’ll then be able to leverage these insights to make solid business decisions and chart the industry’s trajectory.
Millennials and Gen Z are the heart and soul of the home-buying market. They’re typically savvy buyers with the internet at their disposal. That means they come to the table knowing the price laid out in front of them isn’t the total price they’ll be paying.
Buyers are always wary of salespeople like real estate professionals. They always think you’re waiting to spring some horrifying new scam on them. That’s why this new home buyer generation wants to know everything upfront.
In the years to come, you’ll see buyers who want to know the total cost of ownership. On top of what the house costs, they want to know:
A prepared realtor with their ear to the ground will come to the table with all of this information. And it’ll appear in an easy-to-understand format. The total cost of ownership is a new barometer for price consideration. Start presenting it to your buyers now, and you’ll quickly earn their trust.
In the future, we expect to see more communal home purchases. That means you won’t just be selling to couples or single entities anymore. We’re seeing groups of friends coming together to pool their resources and purchase a home. This trend creates blended families and opportunities to live above the means of any single person in the group.
It’s something we’re already seeing today. This trend gained traction during the pandemic but has gained momentum ever since. With home prices rising, it’s become more convenient to turn friendships into families and take this huge life step together. For these buyers, purchases templates and shared ownership agreements can help them navigate the unique aspects of joint purchasing smoothly.
Real estate professionals can thrive in the upcoming decade by embracing the right opportunities. One increasingly important area is the ability to learn real estate remotely through online courses. This approach adapts to flexible schedules and quickly provides necessary certifications without geographical constraints.
According to NBC News, between 2010 and July 2021, there was a 772% rise in homes purchased by people with different last names. As many as 48% of millennials don’t have any money put aside for a down payment on a home. On top of that, they carry an average of $90,000 in debt. That means cooperative purchasing could keep the wholesale real estate business afloat.
In the future, you can shift your targeting to include groups of unrelated friends who want to take this huge life step together. Keep an open mind and seek out these joint purchase situations.
One unfortunate trend we’re predicting is that demand for real estate agents will fall in the next decade. That’s primarily due to increased activity by real estate portals and other prominent companies.
These real estate companies are starting to purchase homes in cash. They often approach homeowners with offers before they’ve even listed a property. While this isn’t a new phenomenon, it’s becoming more widespread. These cash deals take money from realtors. Sadly, this trend isn’t going away.
But that doesn’t mean your profession is going to vanish overnight. There’ll always be sellers willing to stage their properties, particularly for some of the larger, more lucrative homes. This shift would also be a massive change in consumer habits. And given the enormous cost of a real estate transaction, many will still cling to tried-and-true methods.
That means you’ll need to prove to your clients why they should trust you and what expertise you bring. Creating web content offering advice and education on home-buying can help with that.
The competition will be rough, with big businesses swooping in and making massive purchases. You’ll need to remain agile if you want to stay competitive. Referrals will become a huge part of your business, so start building your client base now. To support offline marketing efforts, consider adding a dynamic QR code to business cards, flyers, or signage, allowing potential clients to quickly access your contact details or referral links. This can effectively bridge the gap between offline interactions and online engagement.
Big data analytics will be massively helpful tech going forward. This data can provide actionable insights into potential client behaviors that shift over time.
Big data can provide real estate agents with more than consumer behavior reports. It also can identify shifting trends throughout the industry that can help you identify investment opportunities. By leveraging a deal origination platform that utilizes big data analysis, real estate agents can gain access to a wider range of investment opportunities and make informed decisions to maximize their returns.
For example, if data analytics start showing platforms like TikTok and Snapchat gaining ground with Gen Z home buyers, that’s where you should focus some of your attention.
Shifting preferences constantly happen as new technologies emerge, demographics age and new demographics enter the industry.
By keeping a close eye on big data analytics in the future, you’ll be able to see downturns in the housing market coming. That can help you prepare to weather the storm.
The real estate industry is constantly in flux, and the best way to stay ahead of sudden shifts is to pay attention to where the industry is going. The next decade seems as though it’s going to have its difficulties. But new technologies are emerging, with new opportunities coming from the Metaverse.
That means there’s plenty of potential for success between now and 2033. It’s just a matter of agility and a willingness to go where real estate trends point. By keeping track of these seven major real estate predictions, you can keep yourself on the cutting edge and protect your future success as an agent.