Breathing Room

According to new predictions from Zillow, affordability will continue to remain a challenge for the foreseeable future, but they now predict that conditions will improve at some point in 2024, giving buyers more breathing room in their search for housing. Those that can’t buy are turning to rentals, leading to increased demand in that market, especially for apartments and single-family rentals with easy access to dense employment areas such as city centers. Zillow also predicts artificial intelligence (AI) in real estate will continue to advance and be quickly adopted by the industry, improving the home-buying and selling process for all involved properties.

Looking ahead to 2024, Zillow predicts home buyers will have a bit more breathing room—but only a bit. Buying a home will remain expensive, keeping pressure on the rental market to cater to families that will be renting for longer than previous generations. Many who buy will turn to homes that need some work, according to Zillow’s predictions, and do-it-yourself upgrades and repairs will keep new homeowners busy. “I expect the beginning of a long healing process to kick off in the housing market next year,” said Skylar Olsen, Zillow’s Chief Economist. “We know there are a huge number of households in prime home-buying ages waiting for the winds to turn in their favor.” “While still presenting challenges, the market will be better for buyers, with more homes to choose from and improved affordability,” Olsen continued.

Source: Zillow