As the new year begins and interest rates are expected to dip, there’s a renewed sense of optimism about the housing market. To forecast the real estate trends for 2024, AD PRO consulted developers, stagers, and interior designers to gather their insights on what will define the industry this year.
Sustainability Takes Center Stage
Sustainability, once a trendy extra, is now becoming a top priority for home buyers. The Brooklyn Home Company, which has been designing homes with passive house principles, notes a significant shift in consumer attitudes. Co-founder Bill Caleo observes that pre-pandemic, sustainability was appreciated but not fully understood. Now, buyers are actively seeking out sustainable homes and asking detailed questions about eco-friendly features.
Hidden Rock Development founders emphasize the importance of educating buyers on sustainable design elements that aren’t immediately obvious. Their Moccasin Flats project in Utah incorporates local materials and optimal structure positioning to ensure sustainability from the ground up. Co-founder Dallin Jolley highlights that while trendy sustainable features come and go, core sustainable design elements remain essential.
Wellness Amenities on the Rise
Cold plunges and infrared saunas are becoming standard amenities in both single-family homes and luxury condos. These features, which have gained popularity due to their health benefits, are now being included in residential developments. Bryan Grandison, director of lifestyle services at Extell, notes that this trend stems from the pandemic, as people realized the importance of self-care. Developments like One Manhattan Square offer a range of wellness amenities, including a sunken tranquility garden, hammam, hot tub, sauna, and saltwater swimming pool.
A Brighter Outlook for American Buyers
In 2023, high mortgage rates made it difficult for many Americans to buy or sell homes. However, 2024 is expected to bring relief as interest rates are anticipated to drop. Matt Vernon, head of consumer lending at Bank of America, warns that the market could quickly become competitive as buyers rush to take advantage of lower rates.
Creative Staging and Unique Designs
The trend towards unique and creative staging is growing. Instead of the formulaic approach taken by some staging companies, there is now a focus on creating distinctive spaces with a maximalist flair and vintage touches. Andrew Wachtfogel, co-founder and president of new development at Official, notes that high-end market staging now includes curated furnishings, antiques, art, and custom pieces, which sometimes even sell with the property. This approach helps achieve top pricing and reduces the time a property stays on the market.
Residential Members Clubs
The trend of members-only clubs is extending into the residential sector. High-end residences and private clubs are merging to offer tailored living experiences. Developments like Crossroads in Los Angeles are incorporating private club amenities, including bars, restaurants, pool decks, and roof deck clubs within residential buildings. Mary Alice Palmer, global creative director at ROAM, explains that these spaces provide a liveable extension to the private club atmosphere, catering to professionals who want a venue for entertainment and socialization.
In conclusion, 2024 promises exciting changes in the real estate market, with a focus on sustainability, wellness amenities, creative staging, and residential members clubs. These trends reflect a growing emphasis on quality of life and personalized living spaces, making it an excellent time to explore the possibilities in the housing market.
