On January 31, Fortune magazine quoted an economist as saying that buyers must be either “rich or lucky” to buy a home in the current real estate market. With real estate prices rising and mortgages at a 20-year high, many in the middle class are seeing their dreams of homeownership slip out of reach.
But many others are adapting by shelving the idea of finding their dream home and instead focusing on the must-have features of a home they can afford.
Middle-class buyers face tough choices in 2024 and will need to make a strong case for these features to succeed in one of the toughest housing markets in recent memory.
Efficient use of limited square footage
Homes were already prohibitively expensive even before mortgage rates hit a 20-year high and budgets were further shrunk. As a result, buyers of modest means can no longer afford to buy as many homes as they did just a few years ago, and are compensating by targeting homes that make better use of smaller spaces.
“The incredible prices of prime real estate have drawn middle-class buyers to homes that make the most of every inch of the property with smart storage, open layouts, and convertible zones,” says veteran naval officer says real estate agent Matt Strickland. Years of experience and investment properties in four states. “With efficient use of space, the 1,000-square-foot residential lot goes a long way in accommodating families with children.”
convertible space
Spaces that can do double duty, like open-and-storage ottomans, are high on the list for square footage-hungry buyers this year.
“In 2024, middle-class buyers will have convertible spaces, such as a basement that doubles as a home office or guest bed, an attic that doubles as a children's bedroom, or a garage that converts into an in-law suite. “We're going to rely on affordable housing,” Strickland said.
open layout
Open layouts have gone in and out of fashion over the years, but given the reality of 2024, open layouts are once again trending among buyers who can't afford as many rooms as they need or want. There is no doubt that it has.
“Open-layout homes are perfect for making a modest home appear more prominent, or for arranging furniture items that the homeowner sees fit for family gatherings or seasonal events.” Strickland says. “Biophilic elements and spaces that utilize the full length of the property are likely to be more popular with buyers than open, warehouse-like interiors.”
creative storage
When the area is limited, there is less space to put things. This means that middle-class buyers are looking at homes that are space-optimized to accommodate everything a family brings into the home.
“Smart storage solutions like built-in vertical shelving and raised storage can make the most of small spaces and save middle-class buyers thousands of dollars on real estate costs,” Strickland said. I am.
updated window
Old, inefficient windows put a double strain on your wallet by lowering your home's value and increasing your energy bills. Besides, replacements are expensive. That's why middle-class buyers in 2024 are clamoring for modern, efficient portals to the outside world.
“Most middle-class homebuyers understand the importance of upgrading their windows. If they don't understand, I tell them,” says John, a licensed real estate salesperson. said Bradley Wilson, a mentor with Finger Lakes Sotheby's International Realty (Skaneetels). Based in New York, he has over 10 years of experience and $100 million in sales. “Not only do they contribute to the overall aesthetics of a property, but they also play an important role in energy efficiency, saving you money on energy bills in the long run.”
modern flooring
Average earners are also focusing on what they have at hand this year.
“Middle-class homebuyers recognize the importance of modern flooring, not only to enhance the visual appeal of their homes, but also for their durability and ease of maintenance,” Wilson said. Masu.
According to Better Homes and Gardens, the flooring trends expected to dominate 2024 include:
- warm colored tiles
- retro carpet
- sustainable floors
- farmhouse flooring
- hardwood in the kitchen
- neutral tiles in the bathroom
home office
Although much has changed in the real estate market, the trend toward remote work and its demands on residential space continue to influence purchasing decisions for buyers with average incomes and limited budgets. I am.
“In my opinion, a dedicated home office space will be the most important feature for middle-class consumers in 2024,” said John Molek, owner of Best Offer REI, an Ohio real estate investment firm. Told. “As more and more people start working remotely as well as take on side hustles, it has become essential to have a dedicated workspace that can be used for more than just a 9-to-5 job, such as passion projects or passive income. Therefore, homes with bright, well-lit spaces and soundproof areas are preferred by prospective tenants and buyers, as they facilitate a productive working environment at home.”
Efficient appliances and meaningful smart home technology
The trend toward smart, all-connected things has grown in recent years, as expensive IoT technology has proven to be too costly, too complex, and often little more than a novelty to show off to the neighbors. It tapered off.
But in 2024, middle-income buyers are looking for technology that eliminates the clutter of over-connectivity and truly adds value.
“Middle-class buyers in 2024 are expected to prioritize features that blend comfort, convenience and cost-effectiveness,” said Denis Silshkov, head of growth at real estate investment firm Awning. “Energy-efficient appliances and smart home technology are high on the list because these features not only improve your daily life, but can save you money on your energy bills in the long run.”
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