Trends Shaping the U.S. Housing Industry

During these times, we face a lot of uncertainty, but what can we expect from the U.S. housing industry during these times? Tri Nguyen, Forbes Councils Member and CEO of Network Capital Funding Corporation, discusses five trends that can help us understand what this means for the supply and demand of housing in America. 

  • Homes Are More Important Now Due to Remote Work

When employees received word in March 2020 that they will be working from home, many believed that the change would be temporary. However, more than a year later, it is still unsafe for all to return to in-person work. Now, working from home is simply the new way of working for some. After realizing this, the question for many employees is: If my office is my home now, shouldn’t I buy a home that is suitable for my needs? And, according to Harvard Business School, “the segment of houses suitable for remote work is in high demand,” says Nguyen.

  • Home Prices Continue to Increase

Of course, we have to consider that home prices are different in certain cities, counties, and regions of the country. There may be lagging or even declining housing demand, explains Nguyen. But overall, home prices are surging. Even housing markets in moderate demand regions have “intense bidding wars and closing prices well beyond the listing price,” states Nguyen. 

  • Demand Is Concentrated in Certain Areas

Specific areas of the country are facing greater housing demand than others, due to reasons such as taxation, prevailing legislation, and weather. Nguyen points out that “major cities in Florida, Tennessee, Texas, Colorado and Arizona are leading the nation in housing demand.” On the other hand, the nation’s most prominent cities “are primed for real estate underperformance,” says Nguyen.

  • Inflation Is Pushing Demand for Homes

Naturally, in times of inflation, individuals are quick to purchase items of tangible value. As money in people’s savings accounts is losing value, Nguyen asserts, “savvy investors are rushing to the market to sink that money into a home.” Purchasing a home becomes an investment—one that is likely to appreciate in value.

  • The Suburban Migration Is Real

Uncertainty about city life has driven former residents of New York, California, and other cities “to flex their buying power in lower-tier cities, suburbia and the country,” according to Nguyen. Depending on people’s budgets and perspectives, they may buy real estate in a major city, considering it a steal, or they may decide to live somewhere more suburban or rural.

Nina Nguyen // CIRB Journalism Intern