2017 will soon be upon us, and as we get ready to flip the page to the new year, housing predictions continue to pour in from numerous analysts and industry experts – including the online real estate giant, Zillow.
With President-Elect Donald Trump set to take over the White House in January, most analysts agree that it’s hard to predict exactly what housing will look like in 2017. Zillow speaks to this in some of its predictions, pointing to several potentially incoming policies that could directly affect the market – such as Trump’s plans for loosened regulations, tighter immigration standards, etc.
So with that said, here are Zillow’s six housing predictions for the upcoming year:
1) “Cities will focus on denser development of smaller homes close to public transit and urban centers.”
2) “More millennials will become homeowners, driving up the homeownership rate. Millennials are also more racially diverse, so more homeowners will be people of color – reflecting the changing demographics of the United Sates.”
3) “Rental affordability will improve as incomes rise and growth in rent slows.”
4) “Buyers of new homes will have to spend more as builders cover the cost of rising construction wages—driven even higher in 2017 by continued labor shortages—which could be worsened by tougher immigration policies under President-Elect Trump.”
5) “The percentage of people who drive to work will rise for the first time in a decade, as homeowners move further into the suburbs seeking affordable housing – putting them further from adequate public transit options.”
6) “Home values will grow 3.6% in 2017, according to more than 100 economic and housing experts surveyed in the latest Zillow Home Price Expectations Survey. National home values have risen 4.8% so far in 2016.”