Will America Become A Renter Nation In 2024?

If you’re curious about what the housing market has in store for us in 2024, Zillow’s got some insights that might pique your interest. Here’s the lowdown:

More Choices, but Don’t Expect a Bargain

Zillow predicts that more homes will become available for sale in 2024. Why? Well, it seems like homeowners have finally accepted that those super low mortgage rates we saw a while ago aren’t making a comeback. So, they might decide to put their homes on the market. This could be good news for homebuyers, as it could help ease the pressure on prices.

A Slight Breather for Affordability

Buying a home has been seriously pricey lately, with some folks spending over 40% of their earnings on mortgage payments. Ouch! But there’s a glimmer of hope on the horizon. Zillow forecasts that home values will stay relatively steady in 2024, falling only by 0.2%. Plus, recent inflation news suggests that mortgage rates might not change much either. That means the cost of buying a home could level off, giving potential buyers a chance to catch their breath.

Renting Could Be the New Norm

While buying a home might get a tad more affordable, many households could still find it tough. That’s why Zillow thinks the demand for single-family rentals will keep growing. People want more space and a backyard, and renting could be the way to get it without breaking the bank. Some homeowners might even consider renting out their homes instead of selling when they move. Those super low mortgage rates they locked in make it tempting.

Cities Are Calling Again

Remember when everyone was moving away from downtown areas during the pandemic? Well, it looks like that’s changing. As companies call their employees back to the office, people are heading back to the cities. Demand for rentals in commutable areas near downtown is on the rise. So, if you’ve been dreaming of city life, 2024 might be your year.

Fixer-Uppers Might Get Popular

With not that many homes available for sale, you might have to consider a home that needs a little TLC. These homes could attract both traditional buyers and home flippers. But don’t expect a bargain. The higher cost of buying today makes flipping a bit trickier, so buyers might not face as much competition from flippers as before.

AI Making Home Shopping Smoother

Artificial intelligence is set to make your home shopping and selling journey in 2024 much better. Expect new tools and technologies designed for real estate agents to make their lives easier. For buyers, AI-powered experiences will offer valuable insights and guidance on home financing. So, get ready for a smarter and more streamlined real estate experience.

In a nutshell, 2024 could bring some changes to the housing market, but don’t expect a massive transformation. It’s still a seller’s world out there, but buyers might have a bit more room to breathe.