Here are the top five homebuilding industry trends to watch for in 2024:
Growth in New Construction
While interest rates have had a big impact on the demand for new construction, we expect to see growth in our industry in the coming year, especially if rates go down by mid-2024 as predicted. In this scenario, we will see the many people who have remained on the sidelines jump back into the new construction market. This release of pent-up demand should drive a surge in growth among new home builders. In the meantime, while interest rates are high, builders are getting creative, trying to help to find ways to get buyers into new homes.
At Camelot, we have increased our investment and involvement in single family rentals as a part of a broader strategy of diversification. I would expect other builders to similarly look at diversification of operations to anticipate fluctuations in the real estate market. One way we’ve diversified is through a partnership with Arcadia Communities on a number of beautiful single family rental communities that fulfill the need of consumers who can’t afford substantial down payments or higher interest rate loans, but still desire a single-family home lifestyle. Our company’s diversification efforts also include the launch of our rebranded custom home division, and the addition of introductory luxury communities and high-end short-term rental properties.
Strong Demand in Renovation and Custom Home Market
We predict continued strong growth in the custom and renovation business, as many people are choosing to stay in their current location and keep their low interest rates. We are investing heavily in this business and expect to see more customers wanting to adapt their current homes with full model renovations or build their own custom, personalized homes.
Multigenerational Living Spaces
We expect to see an increase in families looking for homes built for multigenerational living. In some cases, this involves adult children living at home, and even more often, we’re seeing families welcoming aging parents into their homes. This could mean a separate wing of the home or a separate structure that gives enough proximity without shared walls.
Seamless Integration of Technology
Features that were once considered novel are now becoming mainstream. As our lives become more digitally integrated, we will see new homes become even smarter. From audio visual features to lighting, security systems, electric vehicle charging, and appliances, homebuyers will expect their home to anticipate their needs and make life easier and more enjoyable.
Author: Julie Hancock is managing director and co-owner of Camelot Homes, a Scottsdale-based family-owned luxury homebuilder.