Top Five Trends in Real Estate in 2024

New housing trends appear and disappear in real estate every year, and 2024 is no different. As people’s tastes change in homes, interest rates and economic factors adjust, and the popularity of certain climates and states shift, new trends are always happening in the market.

From sustainable homes to houses with luxurious kitchens, these trends help to create unique and wonderful homes and buying opportunities. The trick is to find the current trends that suit your needs when shopping for real estate.

To keep yourself apprised of the current state of the housing market, here is a list of the five trends in real estate in 2024 to pay attention to.

1.   Migration Trends

Moving or migration trends in the market can tell you where people are moving for work or new opportunities. They can also show you areas where people are leaving, which may signal some issues in these cities or states.

According to the 2023 report from Allied.com, Southern States are becoming a popular migration destination for many families. The increased cost of living, home prices, and other economic and lifestyle factors are driving people to move elsewhere, from states like California, Illinois, and Washington.

South Carolina is one of the biggest inbound states due to the growing job market that offers many opportunities and an affordable cost of living. Plus, the state has a pleasant climate, which is always positive in the real estate market. Other southern states, like Arizona and Tennessee, have similar opportunities that are desirable for many people looking to move states.

One reason for the mass exodus from states including California and Washington is the cost of living. Another is that many large companies, such as Tesla and Oracle, are moving to other states due to high operating costs and strict environmental regulations. As businesses leave, so do jobs.

2.   Interest Rate Cuts

According to the real estate company Clever, 2023 was not a good year to purchase or sell homes. 51% of Americans said that 2023 was a bad year to look at selling their homes, while 53% stated that 2023 was a terrible year to purchase a home.

This year, interest rates hit a worrying rate of 8% for 30-year mortgages. That’s in stark contrast to the 3% interest rates just a few years ago. Nevertheless, there may be hope.

According to Jerome Powell, Chair of the Federal Reserve, the U.S. government expects to cut the interest rate at least three times in the coming years. That could mean 2024 will be a better opportunity for buyers. When these interest rate adjustments occur, the housing market may flourish again, encouraging people who are locked in lower interest rates to consider listing their homes and moving again, offering prospective buyers more housing options.

3.   Housing Types & Sizes

While there is a variety of homes in different styles and sizes for buyers to choose from, the current trend in housing sees buyers downsizing their homes while apartment sizes are increasing. Lifestyle changes and high mortgages are the biggest contributors to downsizing. As families are smaller, the need for fewer bedrooms has grown.

In addition, the size of condos and apartments is increasing as buyers want bigger rooms to live in. With the rise of working from home since the pandemic, buyers want to be able to work from their homes while still having space to separate work from home.

According to Sean M. Stadler, the managing principal at WDG Architecture’s Washington, D.C. office, before the pandemic, the average apartment size was around 870 square feet. These days, the average apartment size is closer to 1,000 square feet.

4.   Sustainable Homes

With modern concerns about being eco-conscious, sustainability is one of the largest 2024 trends in the real estate market. Since the introduction of federal-backed incentives from the Department of Energy in January 2023, more energy-efficient homes are being built.

Energy-efficient homes can save up to 35% on people's electricity bills and cut waste by 40% due to the way these homes are built. These homes cut electricity bills by using certain materials and building techniques that can sustain extreme weather conditions.  

For instance, high-grade insulation and windows help keep a balanced temperature regardless of the climate, reducing the need for heating and cooling use at all hours. Also, by using open planning, homes get more natural light, which can help reduce the amount of light sources people use during the day. And finally, solar panels can help offset energy costs almost completely.

Sustainable homes also change what materials are used in the building to help with maintenance and upkeep. This is done by using materials besides wood for framing, which is susceptible to rot, termite damage, mold, and water damage. Instead, home builders may use sustainable alternatives like recycled materials and concrete.

5.   Focus on the Kitchen

It’s no surprise to anyone that the latest real estate trends include a focus on the kitchen. The kitchen has and always will be an important part of the home where families congregate.

These days, people are building larger kitchen spaces to accommodate more people and store more food and kitchen items. This also adds more places to decorate according to personal tastes while keeping the room practicable for cooking and dining, with updated appliances and functionality. 

For instance, a walk-in pantry helps create order inside the kitchen while still being able to grab whatever food you want easily. Furthermore, using updated appliances and plumbing like induction stovetops, pot filler faucets, and large refrigerators is a great way to make a kitchen efficient, allowing people to cook and share meals together while saving on going out.

Conclusion

Buying a home can be complicated, but shopping for what you want at the right time doesn’t have to be. By following the market and using this guide on the top real estate trends in 2024, you can decide what to look for to meet your family’s needs and when to search and purchase.