What’s hot in real estate seems to be in a constant state of flux. Shag carpeting, parquet floors, and avocado green appliances are no longer popular. But there are new movements shaping the national and local markets. It’s hard to distill this into just a few, but here are some of the most significant trends that continue to impact the world of real estate. #MILLENIALS Millenials, adults under 34-ish, already account for the largest share of home buyers (32% last year according to NAR). Not only that, but millenial house purchases are expected to continue to increase as the economy improves and young folks begin to feel stable at work. Urbanization was a huge trend over the last decade as city centers exploded with new construction and an influx of young people. But perhaps the biggest change coming is the return to the suburbs. A new NAHB survey of people born after 1977 found that 66% want to live in the suburbs, 24% in rural areas, and only 10% in city centers. This is great news for the San Fernando Valley and suburbs around the country. #SuburbiaWins

SMALLER IS THE NEW BIGGER

In the second half of the 20th century, the average size of houses more than doubled. Four to five bedrooms became the norm for new construction as larger and larger houses replaced the 3+1 bungalows of the 1950s here in Los Angeles and elsewhere in the country. But that trend is now reversing course. Many homebuyers are looking for smaller digs due to their many advantages: lower prices, less space to clean, and a simple way to purge or simplify. Some are even going to the extreme. The “Small House” movement has folks moving into homes under 500 square feet, sometimes even under 100 square feet! Some of these are professionally manufactured; some are totally

DIY. SHORT-TERM RENTALS ARE HERE TO STAY

Sites like vrbo.com and airbnb.com have made it easy for homeowners to lease out their properties for terms as short as one day. Initially this impacted the hotel industry as savvy tourists looked for bargains on these new websites. But the trend is also affecting the way some buyers and sellers view real estate. Is a property good for renting out short-term? Is it close to popular tourist attractions? Perhaps it has a separate entrance or guest house. These can be a great option for homeowners looking to profit from short-term rentals. Just be aware of the work and risks involved.

Clark Hill – Century 21

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