When we reach December, the natural inclination is to look ahead to the future. The last year was undoubtedly tumultuous in the real estate market, especially at the residential level. Next year may offer a much different story.
Residential real estate may stay hot
The residential real estate market, from single-family homes to rentals to manufactured homes, may remain extremely hot. This strong market also may see some residential property landlords finally able to raise rents after a long period of stagnancy due to the pandemic.
Commercial real estate may see some upticks.
Commercial real estate sales, rentals and construction remained relatively stable, but it was a staggered stability. Manufacturing, shipping and other production industry properties remained active at normal levels throughout the pandemic. They will likely continue. However, different types of property, such as office buildings, may begin to see more use, more life, and higher demand in the next year.
Other sectors may finally see a “return to normal”
Entertainment-focused properties – restaurants, venues and bars – saw a significant dip in profits. Many closed. Many of these properties remain untouched even now. However, there is substantial hope that next year will see an increase in these industries.
This means that vacant properties may begin to move and that there may soon be an increased demand for new properties of this type.
There are reasons for optimism in 2022
While much is uncertain, there is an excellent chance that 2022 will be a strong year for the real estate industry as a whole. For developers and commercial real estate firms, this is a great sign.