Housing trends for 2009

Here are trends developing in the residential real estate market:

• Higher-density housing — Urban areas offer people the opportunity to work, shop, and play right where they live. Market demand is growing substantially for housing in urban areas, particularly from young singles, childless couples, and seniors.
• A sense of community — Yankelovich, a national research firm that studies consumer trends, has identified what it describes as “hiving,” which it defines a peoples’ quest for a more meaningful sense of community through frequent social interaction and neighborhood involvement.
• Experiences — City residents want to be closely connected to community amenities. They want to be within walking distance of, or connected by transit to, recreation, culture, entertainment, and work.
• A simpler lifestyle — Empty nesters want a simpler lifestyle, as well as the children of empty nesters who don’t necessarily want to live in the type of suburban environment in which they grew up.
• Green living — Green will remain a strong trend, driving internal and external home components, according to builders. You’ll see more energy saving features such as radiant barrier roof decking and eco-friendly materials such as low VOC paint, which emits less of the fumes that can cause respiratory problems.
• Prices — Real estate industry experts expect financial and real estate markets in the United States to bottom in 2009 and then flounder for much of 2010, with ongoing drops in property values, more foreclosures and delinquencies, and a limping economy that will continue to crimp property cash flows, according to the Emerging Trends in Real Estate 2009 report from the Urban Land Institute and PricewaterhouseCoopers LLP.
• Get smaller — People realize they don’t need 3,000 square feet and four cars anymore. McMansion-style subdivisions in the suburbs will take a double whammy. Rising heating/cooling bills for expensive homes work against sellers already struggling to overcome resistance to car commuting expenses.

Sources: National Association of Home Builders and Urban Land Institute