There are three prominent real estate trends in the coming years. The first is the continued decline in the rental market. While home appreciation is still a positive trend, rental housing affordability decreases. This trend is fueled by the increase in young professionals moving back in with their parents. This population shift is driving lower home prices and causing several problems for landlords.
As a result, the post-pandemic market no longer favors those units needing work. Though this trend is unlikely to persist, activity has increased for homes that need work. Moreover, the gap between renovated and renovated units has widened. Meanwhile, the demand for rental units in mid-sized and smaller cities will outpace the supply. This trend also creates excellent real estate investment opportunities. Investors can now purchase underperforming rental properties at bargain prices in anticipation of the return of renters to the big cities in 2020. Moreover, they can repurpose vacant commercial properties into housing units.
With the rise of millennials and other millennials, home amenities are also becoming more critical. Luxury homes with spacious yards decreased in popularity in the prior years but were back in style in 2020. The pandemic lockdown may have influenced this trend, but the safety of large outdoor spaces is still a popular home amenity. The popularity of home offices is tied with swimming pools as the second-most popular home amenity.
The third housing trend for 2022 is the continued expansion of the middle class. While more people will move to the suburbs, the housing market will remain relatively affordable. In addition, people will move away from expensive cities, and prices in small towns will continue to increase. With these three trends in mind, it will be a wise time to buy a home shortly. Of course, you never know when the trend might reverse, but there are many ways to invest in real estate.
As we approach the 2022 real estate market, New York City condos may show a meaningful appreciation. Recent luxury purchases are already paying off, but investors should also consider the effects of proposed interest rate increases on prices in sensitive areas. In addition, the weaker dollar has benefited investors outside the US. So if you want to invest in a luxury condo in New York City, be prepared to wait until 2022 to reap the benefits of this property trend.
The housing market in New York is in a period of sustained scarcity, exacerbated by high prices and increasing mortgage rates. For example, the median price of a home in Brooklyn in November 2022 increased by nearly 24 percent over the same period last year. This is the first sign that New York will return to its previous high as an international city. While the path to recovery isn't as easy as it used to be, the prospects for further growth in 2022 are reassuring.
In 2022, home prices will remain at a historic high. According to a University of Oxford report, up to 53% of real estate companies will invest in technology by 2020. And, if you're a homebuyer, adopting innovative solutions will continue to drive home prices upward. Nevertheless, a surge in new inventory will stabilize prices. If this trend is actual, it should mean a stable market for buyers and sellers.
Another trend in real estate for 2022 is virtual tours. Whether it's a virtual tour of a property, virtual tours are an excellent way to experience the property. This will save time and money because consumers won't need to visit multiple properties physically. In addition, it will also make it easier for people to compare different properties in one place. These benefits make virtual tours an excellent choice for many consumers.
In Park City, sold properties are up 53% over last year while pending properties are more than double what they were in October. Pending properties are likely to outpace sold properties by 12%, as new construction is expected to bring about a significant increase in inventory. However, this increase in stock will likely only continue until the mid-summer months, and the market will slowly slow down. So, if you're looking to buy a home or sell land, now is the time to act.
One of the most promising trends in real estate for 2022 is the popularity of Albany. While it's not as famous as New York, Albany has a low entry point and an immense population of perpetual renters. As a result, Albany's real estate investment market will continue to drive the demand for investment properties. The need for these investment properties will remain high. You may want to consider investing in the property in Albany, NY, or other cities with many locals.