Changes Are Underway
The pandemic ignited a home-buying frenzy as the decade-long housing shortage converged with historically-low mortgage rates, shifting workplace dynamics and new opportunities for young buyers to pursue their first homes. As enter the start of 2022, here’s a look at the expectations of real estate experts for new year.
While the pandemic brought an increased focus on housing affordability at the national level, affordability has been a key concern throughout the industry for years and will continue to be an area of focus in 2022. Demand for apartment and single-family homes continues to outpace supply, which ultimately drives competition and hurts housing affordability. Attention throughout the industry and at all levels of government will be focused on remedies to provide quality and affordable housing.
It’s also likely that we’ll see increased regulatory efforts directed at the rental housing market after a tumultuous time during the pandemic. Though highly disputed by economists nationwide, rent control policies are gaining steam and will continue to be pushed as a quick solution under the guise of preserving affordable housing.
Our office is keeping a keen eye on regulatory and tax changes surrounding the market. Other industry regulations are also being examined, fueled by the expiration of pandemic-induced eviction moratoria. These policies must be watched closely, as they achieve the opposite of the intended effect, driving up housing costs as available housing units leave the market and competition increases.
Your trusted advisors at FBD are conducting the necessary due diligence to keep your real estate investments as lucrative as possible in the changing times. To find out more about obstacles and opportunities that are in your path, give us a call and allow our experts to help.