Real Estate Forecast for the Next 10 Years

If you’re a renter or investor looking to enter the real estate market over the next decade, here’s a real estate forecast for the next 10 years. 

Home prices in the United States increased more than 95% during the last decade following the Great Recession and the COVID-19 pandemic. This left many sitting on the sidelines as housing prices soared, average wages increased at less than half the rate of home values and the Consumer Price Index jumped 33%. 

While price increases have moderated, sticky inflation and high mortgage rates have provided consumers little relief. To help inform your decision about buying or investing over the next decade, you can consider this real estate forecast for the next 10 years.

Real Estate Market Overview

High interest rates, a limited stock of available homes, and rising housing costs define the real estate market in 2025. However, the word reverberating through the industry is “change,” and the transformations taking place are driving opportunities and challenges for buyers and investors.

Buyers continue to move from urban centers to suburban and rural areas and are demanding sustainable, energy-efficient homes. From virtual tours to artificial intelligence to the blockchain, advanced technology has altered the job of the real estate agent and how properties are bought and sold.

Both buyers and sellers have grown cautious amid rising home prices, economic uncertainty and a tight market exacerbated by a slowdown in building due to construction costs and labor shortages. Would-be buyers are renting, and this provides investors opportunities in rental homes, buying and renovating undervalued homes or following the migration out of cities to where properties may be less expensive. 

Real Estate Market Forecast for the Next Decade

So what is the real estate forecast for the next 10 years? Here are the trends impacting the U.S. housing market and reshaping the real estate industry.

Rise in Demand for Hybrid Homes

The move to remote work during the COVID-19 pandemic caused many consumers to focus more on work-life balance. This has led to increased demand for hybrid homes that provide the required workspace and have home features and amenities that promote well-being and gathering.

Hybrid homes may include multifunction rooms for work and play, natural lighting, an improved layout from inside to outside, fitness and recreation areas and smart home features for automatic lighting, temperature control and security. Expect to see more homes built near green spaces.

Increased Use of Artificial Intelligence

Artificial intelligence (AI) automates repetitive tasks, creating efficiencies for real estate professionals, builders and appraisers. It also aids homebuyers and investors by providing transparency and simplifying and speeding up the purchasing process.

Real estate companies use AI to value properties, provide risk analytics, crunch data to inform investment decisions, match buyers and sellers and enhance customer service.

Rise in Joint Home Purchases

Communal purchasing, or buying a home with a friend or someone other than a romantic partner, is an idea lit by the pandemic of 2020 and fanned by the high cost of living spaces. Isolation during the pandemic drove many to seek community later. 

As inflation set in, housing costs continued to rise and wages failed to keep pace, friends and family members began purchasing homes together to share their time and help shoulder financial burdens. Millennials and Gen Z Americans, who don’t share the societal mores of previous generations, are accelerating this trend.

Sustainability to Take Center Stage

Consumers are demanding sustainable living and working spaces, and real estate developers who fail to respond could face challenges to profitability. Sustainability in real estate – using designs and practices that are friendly to the environment and energy efficient – is impacting residential and commercial real estate. 

The goal of sustainable building is to lessen negative environmental impacts while improving property performance and prioritizing the health of the individuals inside. Sustainable practices include using sustainable building materials, installing renewable energy (solar panels), increasing energy efficiency (appliances and lighting) and conserving water (rain-harvesting systems). 

Decline in the Number of Real Estate Agents

Real estate agents are dropping out of the business. Since 2022, housing sales have fallen as mortgage rates and housing prices have risen. A legal settlement with the National Association of Realtors (NAR) in 2024 could cut commissions on real estate sales. 

Direct-to-consumer platforms allow buyers and sellers to connect without an agent. Additionally, AI has sped up transactions and reduced paperwork, and buyers, sellers and investors can now access transaction information online. Combined, these factors have driven the number of real estate agents registered with the NAR down 2.49% after years of steady growth.

Slowdown in Inflation

Inflation has slowed. But don’t expect housing prices to fall. However, you can anticipate that price increases will slow along with inflation, creating more stability for buyers in the real estate market.

When inflation slows, the pressure on housing prices to appreciate decreases. This allows for a move back to a more balanced market, meaning homes may become more accessible to potential buyers.

Decreased Supply of Multifamily Housing

While some markets, particularly in the Midwest and Northeast, have seen the supply of multifamily housing increase, several markets are facing a decreased supply. Rising construction costs for land, labor and materials have contributed to the decrease. 

Strict zoning laws, environmental regulations and policies controlling rent, in some cases, add to costs and hinder development. Banks reducing construction loans and higher interest rates have also impacted multifamily housing, making it difficult for developers to fund projects.

Decide Whether It Is Time to Buy or Invest in Real Estate

Many buyers and investors have felt priced out of the real estate market. However, real estate is undergoing a lot of change. By keeping up with its evolution, you can decide whether or when you might buy or invest over the next 10 years. Understanding the 10-year forecast for real estate can help you choose the right time to jump into the game. 

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