Real Estate Trends to Watch in 2023 That Have Nothing to Do with Interest Rates

With every coffee or cocktail party discussion over the last 6 months focused almost entirely on affordability and rising interest rates, I thought it would be refreshing to put the ‘cost’ of Real Estate conversation to the side for a minute, and talk about some other interesting trends that are influencing what types of homes people are purchasing.

The Real Estate industry is constantly evolving, and keeping up with the latest trends and predictions is crucial for anyone looking to buy or sell property in the coming year. With the pandemic having permanently reshaped the way we live, work, and interact, many experts are observing several significant changes in how buyers are making decisions about Real Estate.

Rise of the '15-Minute City

The concept of the '15-Minute City' has been gaining traction in recent years, and many experts believe it will become even more popular in 2023. The idea is to create walkable, bikeable communities where residents can easily access all the services and amenities they need within a 15-minute radius. This includes everything from grocery stores and restaurants to schools and parks.

The pandemic has made many people re-evaluate their priorities when it comes to where they live, and the '15-Minute City' offers a more sustainable, community-focused alternative to sprawling suburban developments. Developers and city planners are already working on projects that prioritize walkability, bikeability, and public transportation, and this trend is expected to accelerate in 2023. 

Greater Emphasis on Wellness and Sustainability

As people become more aware of the impact of their lifestyles on the environment and their health, the demand for sustainable, wellness-focused Real Estate is expected to grow. This includes everything from energy-efficient homes to developments that prioritize access to green space and outdoor recreation.

In addition to eco-friendly features, more developers are incorporating wellness amenities like gyms, meditation rooms, and green roofs into their projects. This trend is expected to continue as more people prioritize their health and well-being, and seek out living spaces that support a healthy lifestyle.

Remote Work Continues to Shape the Market

The pandemic exponentially accelerated the trend towards remote work, and many experts predict that this shift will have a lasting impact on the Real Estate market. In 2023, we can expect to see continued demand for homes with home office spaces, high-speed internet, and other features that support remote work. This trend also continues to drive more people to move away from expensive urban centres and towards more affordable suburban and rural areas. With remote work becoming more mainstream, people are no longer tied to a specific location for work, and are increasingly looking for homes that offer a better quality of life and a lower cost of living.

Technology Continues to Transform the Industry

Technology has been transforming the Real Estate industry for years, and this trend is expected to expand in 2023. From virtual tours and online listings to blockchain-powered transactions and artificial intelligence-powered property management, the Real Estate industry is becoming increasingly digitized. In addition to these technological advancements, we can also expect to see more focus on smart homes in 2023. Smart thermostats and lighting are becoming the norm in new developments, and voice-controlled appliances and security systems are growing in popularity.

So there you have it! As we look ahead to the rest of 2023, it's not just about interest rates and affordability - there are some exciting trends to watch out for that go beyond the usual discussions. The rise of the '15-Minute City' concept, greater emphasis on wellness and sustainability, the continued impact of remote work, and the ever-evolving role of technology are all shaping how people are buying and selling homes. So if you're in the market for a new place, keep an eye on these trends and see how they may impact your Real Estate decisions in the coming year. And as always, reach out anytime to discuss these trends (or even prices and interest rates) with your trusted Real Estate professional. Happy house hunting!