The real estate industry is constantly evolving, and it can be challenging for investors to stay informed about the latest trends and insights. In this exclusive interview, we have reached out to 10+ experts and leaders in the real estate industry to provide our readers with a comprehensive view of what’s ahead for the industry. From the impact of technology to the potential for future growth, these experts provide valuable perspective on the opportunities and challenges facing investors in this dynamic field. You will learn about the current state of the market, the effects of recent events on the industry, and predictions for the future of real estate. Read on to learn more about their thoughts on the current and future state of the real estate industry.
Interviewee: Verineia Codrean
Company: https://www.startupnorway.com
Answer: My experience & qualifications are tied to sustainability & innovation across industries, through the collaboration of startups with corporates. Real estate, Proptech / Contech and Construction industry in general is taking a big portion of the solution we are working with because Real estate is responsible for 40% of global carbon emissions. This means that this is the single most impactful industry to focus on getting to net-zero carbon emissions. But, in addition to that, this also makes an increasing financial sense for the industry to invest in sustainability, because of both legislation coming its way as well as its footprint.
Therefore, the solutions we are working with are showing a solid direction for a series of predictions and insights for the direction Real Industry is heading to. And even if I’m based in Norway, this has worldwide ripple effects but also is representative for the entire industry as a whole, notably Scandinavia.
So, here is a set of insights & predictions for the Real Estate base don our data:
– The VC space will look into technology to decarbonise the real industry with both software and hardware (one of the strongest examples is Fifth Wall, that is leading in this space)
– Circular Economy will take a leading role through the trend of retrofitting buildings and making them fit both the incoming regulations, but also make the existing real estate space in line with the decarbonising trends (and pressure) for the industry, like making existing building more energy efficient for example
– All things ESG will be in high demand. This means that real estate will require better tech stack for property management solutions, but also data management in general. It’s important to make a distinction to the fact that ESG trend in real estate in data management is not only for minimal reporting reasons, but to actually plan & verify the actions and performance. And this will set the stage from software into hardware, because only data management alone won’t be able to create a meaningful change in the industry if not followed by hardware.
– Tenant Experience which represents the trend around the circumstances of rents at all-time highs + inflation hurting customers’ purchasing power, landlords can’t raise rents much further. This means that if property owners will invest in tenant experience, they will be more likely to reduce turnover, but also achieve maximum revenue. This also taps into the fact that Gen Z renters (the new influx of customers source) have higher expectations for quality, speed, and service than other generations.
– Strong Sustainability trend within the construction materials. The construction industry has been historically the slowest to change. But, with the massive request for lower CO2 real estate, more municipalities are asking, requiring in some cases, the use of recyclable materials to receive construction permits. They make it even into a minimum of new projects to use a mim % of materials from recently demolished assets (this is connected to what I touched upon around Circular Economy earlier)
– Big demand for solutions that will assist RE owners + renters on the ESG/ decarbonization front beyond digital solutions for rating/ reporting/ metering, i.e. physical improvements of the existing assets at scale. (This adds to both retrofitting trend + circular economy taking a big leading role in RE). This means tech solutions to design and build real estate, before it’s even sold and managed. This means innovative technologies in a series of areas: air & water cooling + heating; air (de)humidification; waste heat recuperation in ventilation; power generation for off-grid and autonomous buildings; alternatives to renewable energy; water technologies in buildings (desalination, distillation, generation from air).
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Interviewee: Verineia Codrean
Company: https://www.startupnorway.com
Answer: My experience & qualifications are tied to sustainability & innovation across industries, through the collaboration of startups with corporates. Real estate, Proptech / Contech and Construction industry in general is taking a big portion of the solution we are working with because Real estate is responsible for 40% of global carbon emissions. This means that this is the single most impactful industry to focus on getting to net-zero carbon emissions. But, in addition to that, this also makes an increasing financial sense for the industry to invest in sustainability, because of both legislation coming its way as well as its footprint.
Therefore, the solutions we are working with are showing a solid direction for a series of predictions and insights for the direction Real Industry is heading to. And even if I’m based in Norway, this has worldwide ripple effects but also is representative for the entire industry as a whole, notably Scandinavia.
So, here is a set of insights & predictions for the Real Estate base don our data:
– The VC space will look into technology to decarbonise the real industry with both software and hardware (one of the strongest examples is Fifth Wall, that is leading in this space)
– Circular Economy will take a leading role through the trend of retrofitting buildings and making them fit both the incoming regulations, but also make the existing real estate space in line with the decarbonising trends (and pressure) for the industry, like making existing building more energy efficient for example
– All things ESG will be in high demand. This means that real estate will require better tech stack for property management solutions, but also data management in general. It’s important to make a distinction to the fact that ESG trend in real estate in data management is not only for minimal reporting reasons, but to actually plan & verify the actions and performance. And this will set the stage from software into hardware, because only data management alone won’t be able to create a meaningful change in the industry if not followed by hardware.
– Tenant Experience which represents the trend around the circumstances of rents at all-time highs + inflation hurting customers’ purchasing power, landlords can’t raise rents much further. This means that if property owners will invest in tenant experience, they will be more likely to reduce turnover, but also achieve maximum revenue. This also taps into the fact that Gen Z renters (the new influx of customers source) have higher expectations for quality, speed, and service than other generations.
– Strong Sustainability trend within the construction materials. The construction industry has been historically the slowest to change. But, with the massive request for lower CO2 real estate, more municipalities are asking, requiring in some cases, the use of recyclable materials to receive construction permits. They make it even into a minimum of new projects to use a mim % of materials from recently demolished assets (this is connected to what I touched upon around Circular Economy earlier)
– Big demand for solutions that will assist RE owners + renters on the ESG/ decarbonization front beyond digital solutions for rating/ reporting/ metering, i.e. physical improvements of the existing assets at scale. (This adds to both retrofitting trend + circular economy taking a big leading role in RE). This means tech solutions to design and build real estate, before it’s even sold and managed. This means innovative technologies in a series of areas: air & water cooling + heating; air (de)humidification; waste heat recuperation in ventilation; power generation for off-grid and autonomous buildings; alternatives to renewable energy; water technologies in buildings (desalination, distillation, generation from air).
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Interviewee: Rylie Schroeder
Company: https://www.lonewolfrealtygroup.com/team/rylie-schroeder
Answer: Real estate is a tremendous wealth builder and I believe more and more people are starting to recognize this sooner rather than later. It’s no longer a secret that you need to be rich to get into real estate. There are opportunities to create passive income through investing with with 0% down. With the help of social media, there is no shortage of strategies to explore and experts to learn from to start your investment journey. We have already begun to see an increase people who own multiple properties and that number will only increase in the future.
For the betterment of not only our fellow agents but also the communities and clients we serve, I think it’s vital that the real estate industry as a whole commits to a higher level of education and enforces more structured training centered around growing knowledge on contracts and the market. There are a number of teams and brokerages prioritizing agent education and training; which not only increases production due to happy clients and their referrals, but helps to stabilize the market when agents are protecting equity and properly educating their clients. I’m witnessing many of the best agents in the industry switch from some of the most well known brokerages to newer brokerages who offer better splits and more innovative technology.
With the rise of TikTok and social media in general, marketing is more important than ever. Soon enough, plopping decent photos and a basic description on the MLS won’t be enough. Buyers are researching their desired location through hashtags and influences far before they take their search to the web. It’ll be important to provide staging that offers eye catching aesthetic as you’re scrolling through Instagram, videography that captures the homey feel as you walk through the door and extensive knowledge on the communities you’re selling in. That said, consumers should keep in mind that to receive premium service and marketing, you’ll be paying premium commissions.
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Interviewee: Peter Cunha
Company: http://www.opendoorsrealtynj.com
Answer: You will see a major transition in the real estate market in the next 12 months. From a brokerage perspective, you will see a major shift to the bigger brokerage model especially now that we have seen that more of a virtual-based brokerage office is sustainable (ie EXP and Real). You will also see a migration into the “team” model for realtors where they will take over more of a lion’s share of the market. From a housing, pricing, and transaction perspective it will vary on location specifically. The housing prices in Monmouth and Ocean County, NJ which I cover will remain stable for the simple supply and demand model. There are currently more buyers than sellers keeping prices stable. Buyers are being more patient than they have been in the last 2 “Covid” years when it was a buying frenzy. You will see this trend continue for buyers and days on market for sellers will increase. Although prices remain stable, the number of transactions nationally and regionally will decrease significantly (I am projecting down 20%) without prices going down. Interest rates will continue to dictate whether or not we get more transactions as buyers purchasing power (aka “affordability”) has decreased.
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Interviewee: Brett Rosenthal
Company: https://revolve-philly.com
Answer: Despite the higher mortgage rates we are currently experiencing, the real estate market is still very strong. This market is unlike any previous market and people are still buying and selling homes. I don’t expect too much to change with the real estate industry other than more technology that helps both Realtors and Clients looking to buy and sell homes. Every year new tech comes out and I don’t expect this to stop. Right now there is still a shortage of homes on the market, but in the spring I think there will be more for buyers to select from. Rentals have increased in demand as have rental prices. I believe that the market has stabilized now and buyers are understanding the new market and are buying again.
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Interviewee: Richard Mews
Company: https://www.sellwithrichard.co.uk
Answer: More affordable housing crisis.
Despite the housing market’s recovery, the lack of affordable housing for low and moderate-income households is expected to become a more pressing issue. The lack of affordable housing will continue to impact the economy, making it harder for low and moderate-income individuals to access education and employment opportunities and ultimately hinder economic growth. However, the real estate industry will likely have to find ways to address this issue, such as through the development of affordable housing projects or the inclusion of affordable housing requirements in new developments.
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Interviewee: Shaun Martin
Company: https://webuyhousesindenver.org/our-company/
Answer: The real estate industry is facing a number of challenges, from streaming technologies that are changing how we buy and sell properties to the emergence of new players in the market. As these changes play out over the next few years, thought leaders have begun to weigh in on what they think will be the most important developments and trends for the industry going forward.
One of the most talked-about topics is the rise of PropTech, or property technology. This trend focuses on using technology to make it easier for buyers and sellers to find properties, as well as streamline transactions. This could include everything from bots that can help buyers search listings more quickly, to virtual reality tools that allow sellers to give virtual tours of a property.
Another major trend that is likely to have an impact on the real estate industry is sustainability and green building practices. As environmental concerns become more pressing, developers are becoming increasingly focused on creating buildings and homes that are built using sustainable materials and energy-efficient designs. This could include everything from solar panel installations to the use of recycled materials in construction.
Finally, blockchain technology is also likely to have a major impact on the real estate industry over the coming years. The ability to securely store data and execute transactions could revolutionize how buyers and sellers interact with each other and make it easier for people to purchase properties online without having to deal with paperwork or other bureaucratic hurdles.
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Interviewee: Daniel Johnson
Company: http://djohnson.cbharper.com
Answer: As a financial economist turned real estate agent, here are 3 trends I see that will shape the Real Estate Industry on a local, state and national level.
1. Buyer Sentiment — How individuals feel about the current economy will affect how, where, and when they spend their money which is great for Realtors.
2. Interest Rates and FOMO — A Buyer’s Market is currently brewing which will change the way the housing market currently is affecting interest rates, buyer incentives and other Real Estate Trends now
3. Outside Investors — Smart investors from outside the US and outside the local areas will be buying strategic Real Estate Holdings to increase their returns when the market goes up again, which it could soon.
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Interviewee: Garett Polanco
Company: in the process of building one now.
Answer: The real estate industry is expected to continue to evolve and adapt to changing technology and consumer preferences in the coming years. Some of the key trends that are likely to shape the industry include:
1. Increased use of technology: Real estate companies are increasingly using technology to streamline the buying and selling process. This includes the use of virtual tours, 3D modeling, and online marketplaces to make it easier for buyers to find and purchase properties.
2. Greater focus on sustainability: As concerns about the environment continue to grow, there will likely be an increased demand for properties that are energy-efficient and environmentally friendly. This could include homes with solar panels, green roofs, and other sustainable features.
3. Continued urbanization: The trend towards urbanization is expected to continue in the coming years, with more people moving to cities in search of job opportunities and a higher quality of life. This will likely lead to increased demand for urban properties, particularly in areas with strong job markets.
4. Remote work: With the pandemic, remote work has become more prevalent, which could affect the housing market. Some people may choose to move to areas with lower cost of living, or take advantage of the flexibility to live in a more rural or suburban area.
5. Rise of proptech: The proptech industry, which includes companies that use technology to improve the real estate process, will continue to grow. This could include virtual reality-based tours, data analytics, and online platforms to connect buyers and sellers.
6. Increased demand for rental properties: As more people are priced out of the home buying market, there is likely to be an increased demand for rental properties. This could include both traditional rental properties as well as short-term rentals such as those listed on platforms like Airbnb.
7. Greater focus on the customer experience: As competition in the real estate industry increases, companies will likely place a greater emphasis on providing a positive customer experience. This could include offering concierge-like services such as home staging and property management, as well as providing more transparency and communication throughout the buying and selling process.
8. Investment in smart home technology: As technology continues to advance, there is likely to be an increased focus on incorporating smart home technology into properties. This could include things like smart thermostats, security systems, and voice-controlled assistants.
9. Changing demographics: The population is aging, and as such, the demand for senior-friendly homes may increase. This could include things like homes with no stairs, or homes that are easily adaptable to the needs of people with disabilities.
My vision for the future of the real estate industry could be a world where technology and sustainability are at the forefront of the buying and selling process. Properties will be equipped with smart home technology, making them more energy efficient and convenient to live in. The use of virtual tours, 3D modeling, and online marketplaces will make it easier for buyers to find and purchase properties from anywhere in the world.
Urban areas will continue to be popular among buyers and renters, but the trend towards remote work will also lead to an increase in demand for properties in rural and suburban areas. Real estate companies will place a greater emphasis on providing a positive customer experience, offering concierge-like services such as home staging and property management, as well as providing more transparency and communication throughout the buying and selling process.
In addition, rental properties will become more prevalent, as well as the short-term rentals like AirBnB, and the customer experience will be a key factor in the rental market. The growth of e-commerce will have a significant impact on logistics and warehousing real estate, as businesses will look for ways to improve their delivery times and offer more flexible options to customers.
Demographics are also changing, and there will be an increased demand for senior-friendly homes, with features such as no stairs or easily adaptable to the needs of people with disabilities. Overall, the real estate industry will continue to evolve, adapt and provide more and more options to the customers, creating a more sustainable, convenient, and customer-centric real estate market that will benefit both buyers and sellers alike.
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Interviewee: Matt Canzoneri
Company: https://dwellwell.com/
Answer: I see a return to normalcy in residential real estate in 2023. Currently, sellers are acting like it is still 2021 while homebuyers are acting like it’s 2008. The truth lies somewhere in the middle.
The covid-shopping spree, driven by work-from-anywhere policies and a need for more space when stuck at home, is coming to an end. Not every house is receiving multiple all-cash offers over asking price with all contingencies waived. Sellers will need to recognize this and price their home to move.
On the other side, the sky isn’t falling like in 2008 — there isn’t widespread sub-prime lending and home prices aren’t going to drop by double digit percentage points (except, maybe, in some of the areas most overbought during covid). Buyers will stop waiting on the sidelines and reenter this less competitive environment where their down payment and non-cash-offer mortgage product can get them into a home.
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Interviewee: Jess Lex
Company: http://www.jesslexhomes.com
Answer: As we continue to move further as a society into our reliance on digital, online platforms to accomplish many daily tasks, it makes sense to ask the question: “What’s ahead for the real estate industry?” Many people would say that, just like the cashier at a big box store has been replaced by self-checkout, the real estate agent will become obsolete as well. While I don’t agree that this will be entirely true, I do think that more and more of real estate will become self-serve. Consumers will start to question the value of real estate agents. If you don’t need an agent to find you a property because you can just find it online yourself, what is the use in having someone help you with the rest of the process?
I think over the next couple of years, there will be a lot of experimentation with removing the professional real estate agent from the equation, but I don’t think it will stick. For example, do we really need agents to open the door for buyers to show them houses? Some might argue that it’s not necessary and try to provide other ways to access properties to buyers. As a consumer though, I can’t imaging letting homeowners into my home without professional representation. If just anyone can get in the door, where is the protection?
I think consumers will be looking to agents to really prove the value they receive in the commissions they get paid or for agents to take less. Especially as more things can be done, “self-serve.”
I know that the real estate market has been very quick-paced and hot the past several years. I credit a lot of the speed and demand to changes in technology that have increased the ease of accessing properties, information, and electronic offer writing. Since it’s so easy to write an offer without even leaving the comfort of your own home, what do you have to lose if you write one and you don’t get it accepted? I see this demand continuing to hold steady even as the market changes because jumping into the market as a buyer has never been easier.
Agents will continue to find creative ways to stand out from the crowd. The agents who provide the most value to consumers will be the agents that make it in the business and stand the test of time. Until real estate becomes something other than a complicated legal transaction, the real estate industry will continue to be a highly sought after profession where one can find fulfillment and financial advancement if one is willing to put in the work.
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Interviewee: Aaron Boenig
Company: https://brohnhomes.com/
Answer: The real estate industry has always adapted to the world around it, and that is as true in today’s fast-changing world as it was 10, 20, or 50 years ago. Advances in technology have been one of the key drivers of change within the real estate industry and will continue to be moving forward. When looking at the housing market though, and specifically the construction of residential homes, we’ve had little-to-no disruption over the last 100 years. Arguably, the greatest innovation our industry has seen over that time has been the nail gun. New technologies, however, are changing the game.
Off-site construction has been a growing trend over the last 10 years and could be the future of residential construction. Constructing homes, or components of homes, off-site increases the quality of construction, increases efficiency, decreases waste, reduces theft, and decreases cycle times. This is achieved by utilizing a stable labor base and technologically advanced assembly line production within a controlled environment. The output of one of these facilities can produce panels, trusses, modules, kits, and more. Instead of constructing the homes on-site, homes are assembled on-site using smaller crews. Building off-site is truly an innovation that will provide attainable housing to a starving market. The efficiencies created can potentially save buyers thousands of dollars while improving the quality of their homes. It is the latest growing trend, and a trend that will likely evolve and dominate the industry in the years to come. It’s up to the leaders of our industry to further adapt to buyers’ needs, innovate, and find ways to make housing attainable for all. A disruptor to the construction process such as this one would be a huge catalyst for increasing the attainability of homeownership, a goal for us at Brohn. We feel that if you’re not on that bus, you’re going to get left behind. That’s where the industry is headed.
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