How the Real Estate Industry Is Expected to Transform Over the Next 10 Years
Every industry changes over time, and the real estate industry is no exception. The demands of the consumer base determine the path the real estate industry takes. For instance, a recent artificial intelligence study by Oxford predicted that there is a 97% to 99% chance that artificial intelligence will take the place of the real estate agent over the next 10 years. This may not be true, but it is a good reason for real estate agents to develop skills that the industry will need in 10 years. Many times, new career opportunities present themselves as an industry advances.
Upcoming Real Estate Trends
As the industry responds to the demands of buyers and sellers, there are some expected developments over the next decade:
- Rent Auctions – What one person may pay $700 each month for may be worth $900 to another person. Landlords tend to play guessing games when it comes to establishing rent amounts. The rent auction concept enables a landlord to rent to the person willing to pay more as long as the potential renter meets other rental requirements, such as a clean background check, no pets, and the required security deposit upfront. Rent auctions could also encourage landlords to maintain their properties properly.
- Flat-Fee Brokers – Flat-fee brokerages are starting to catch on in some cities around the world. Service plans are offered. Each plan has a certain set of services, so the client chooses which plan works best for his or her needs. This type of program saves time and money for the broker and the client.
- Virtual Reality Buying – As more people move over long distances, virtual reality in real estate will most likely grow. Buyers can already view properties through 360-degree videos online. A potential buyer can see a complete view of a room from hundreds or thousands of miles away.
- Younger People Go Big – Young people just starting out in life used to opt for starter homes. Now, they want to go big. Millennials have moved more often in their lives than their parents or grandparents did when they were young. Now, they are looking for permanency. The desire to buy a home just to buy another later and move all over again isn’t appealing.
Real Estate Isn’t Dying
Even if the predictions say that the real estate industry is going to give way to self-service, that’s not necessarily so. Again, adaptation is key. There will always be the need for the human touch, which means brokers and others in the real estate industry have nothing to do but grow.
By Bradley J. Rich
Real Estate Analyst in Portland, OR