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The Future Of The Real Estate Industry

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Terry Story, Future of Real Estate

With Terry Story, a 31-year veteran with Keller Williams located in Boca Raton, FL

During this week’s Real Estate Roundup, Steve spoke with Terry Story, 31-year veteran at Keller Williams, about the future of the real estate industry. Last week, Steve and Terry spoke about predictions realtors had made for the industry a decade ago. This week, they talked about the predictions realtors are making for the upcoming decade.

Condos And Townhomes On The Rise

One of the first predictions the realtors made for the next ten years is that “condos and townhomes will become more desirable than single-family homes, primarily because they’re less time-consuming in terms of upkeep and maintenance,” as Steve relayed.

This prediction is related to millennial buyers, who are looking for homes that are move-in ready and easy to take care of. They’re not interested in doing major renovations.

Boomers—those who are in their 60s and up—are largely aging at home. They’re not downsizing, selling their homes in order to move into retirement communities. This means housing inventory is down, but, as Steve and Terry have discussed in recent weeks, new construction is on the rise. According to the experts, condos and townhomes is the wave of the future.

Increasing Use Of Technology

Technology is already in every part of our lives, and realtors predict that technology will play an increasingly bigger role in the housing industry. The rise of online home-selling apps is particularly heralded, along with the increased use of social media to help sell homes.

Technology is also predicted to have a more significant presence within homes themselves. Smart homes, ones completely connected to and controlled by technology, are growing in popularity, particularly among younger homebuyers. Along with wanting move-in ready homes with low maintenance, millennials also want the convenience of being able to talk to their homes and use technology to make their daily lives easier.

Terry’s not so sure about being on board with all that. She said, “I don’t care for talking to a device that’s going to turn on my lights. I like to get up and turn on my own lights. Plus, I’m a little freaked out about who’s listening.”

Sustainability, Access, And Amenities

The real estate industry is predicted to move in the direction of more sustainable homes with “socially conscious business practices being a much more important part of the real estate equation,” Steve noted. This has already started with the smallest of things: people are switching to LED lightbulbs, which are far more economical and use much less electricity (up to 75% less) and last much longer than traditional incandescent bulbs.

People more and more want to live in areas that offer easy access to certain amenities and conveniences. For that reason, mass transit, like the Brightline rail system in Florida, which is rapidly expanding its service areas, is predicted to be increasingly important. Having access to good mass transportation means people can still choose to live in Boca Raton but be able to easily zip down to Miami. Terry commented that she’s hearing more people saying things like, “Listen, I don’t have to go to Miami that often, but when I do, I now know I can just hop on the Brightline.” (Boca Raton is being fast-tracked as a new Brightline station.) Steve is apparently one of the converts to using mass transit. He said, “Well, previously I never would have taken a train down to Miami, but now we’re considering doing that because the train’s nice, it seems like fun, and the connections are pretty good from what I understand.”

People want what they want and what homebuyers are predicted to want more of in the future is the convenience of having all their desired amenities at their fingertips. Steve rattled off a partial list: “They want dog runs, they want roof decks, they want work-friendly spaces.” Terry said that she’s seeing more people who are willing to live farther out from major cities and commute if they can get into a housing community that gives them what they’re looking for in the way of amenities. And builders and developers are taking notice.

The Silver Tsunami

There’s also a prediction for a wave of sales being referred to as the “Silver Tsunami.” This is when some 77 million baby boomers will finally start selling their homes, either to downsize or to move into retirement facilities. Zillow researchers report that “Nine million of these baby boomer homes will hit the market between 2017 and 2027.”

Steve and Terry both noted that that should solve the low housing market inventory problem. And with boomers both buying and selling, Steve mentioned reading that, “By roughly 2037, 21 million homes will have been sold as a result of the baby boomers.”

The End Of Paper Sales

Finally, one of the most likely predictions involves “the transition of the real estate industry from a manual, paper-laden process to an end-to-end digital experience within the next ten years,” which Steve quoted from the real estate predictions report. Eventually, the entire process of buying and selling a home will be paperless.

Wrapping up the Roundup, Steve quipped, “I think eventually renters will be able to lease an apartment in a matter of minutes just by filling out a few questions and snapping a selfie that will enable an algorithm to quickly build and vet their application in real-time.”

To learn more about buying or selling a home, or connect with Terry, go to Keller Williams!

Disclosure: The opinions expressed are those of the interviewee and not necessarily of the radio show. Interviewee is not a representative of the radio show. Investing involves risk and investors should carefully consider their own investment objectives and never rely on any single chart, graph or marketing piece to make decisions. Content provided is intended for informational purposes only, is not a recommendation to buy or sell any securities, and should not be considered tax, legal, investment advice. Please contact your tax, legal, financial professional with questions about your specific needs and circumstances. The information contained herein was obtained from sources believed to be reliable, however their accuracy and completeness cannot be guaranteed. All data are driven from publicly available information and has not been independently verified by the radio show.

Read The Entire Transcript Here

Steve Pomeranz: It’s time for Real Estate Roundup. This is the time every single week we get together with noted real estate agent Terry Story. Terry is a 31-year veteran with Keller Williams located in Boca Raton, Florida. Welcome back to the show, Terry.

Terry Story:  Thanks for having me, Steve.

Steve Pomeranz: Just recently, we did some segments on predictions that realtors made 10 years ago looking 10 years ahead, back, back when in 2010. Now, we want to take a look at 2020, and see what some of those predictions are again now going forward another 10 years. Now, 10 years is a long time. Right?

Terry Story:  Yep, it sure is.

Steve Pomeranz: Yeah. So, you were just doing some exercises in your office with regards to goal setting, and you were looking out five years, and that’s hard enough.

Terry Story:  10 years, I still think George Jetson in the little space, you know, vehicles we’ll be driving around in. I don’t know if that’s 10 years or 30 years or 50 years.

Steve Pomeranz: Well, the first projection is that in 10 years, condos and townhomes will become more desirable than single-family homes because there’s less time-consuming upkeep and maintenance.

Terry Story:  That could be true. The way I want to look at this is what’s the age? You know, are all the baby boomers now 10 years from now-

Steve Pomeranz: Yeah, aging out.

Terry Story:  Totally aging out. Based on that, I would say yes.

Steve Pomeranz: Well, we have some information on that-

Terry Story:  I think that could be true.

Steve Pomeranz: Because we recently did an episode where we looked at some studies with regards to what boomers are doing, and they’re staying in their homes longer.

Terry Story:  Right.

Steve Pomeranz: So, if a boomer’s 65 or even 70 and, you know, they get, they’re 80, they’re not necessarily moving out to an assisted living facility. That’s a relatively young age still.

Terry Story:  Right.

Steve Pomeranz: So, maybe not in 10 years, but of course, the millennials are coming up and the millennials are, I think, lean more towards easy does it, easy maintenance and move in, everything has to be set up, move in.

Terry Story:  They want it that way.

Steve Pomeranz: They don’t really want to move in and have to do reconstruction and all of that.

Terry Story:  No, they watch too much HGTV.

Steve Pomeranz: Yeah, we’re going to get into that in a minute, by the way. Okay. All right. Let’s see what else some of these people are saying. Again, they’re predicting the rise of technology.

Terry Story:  Absolutely, we see it now.

Steve Pomeranz: It will increase its role. Let’s see where it says, the rise of online home selling apps.

Terry Story:  Yes.

Steve Pomeranz: The use of social media and the growth of smart home technology.

Terry Story:  Yep, all of that I see. It’s happening now, it’s just going to continue to grow.

Steve Pomeranz: Now, you’re remodeling your home.

Terry Story:  Right.

Steve Pomeranz: Right, you just told me off air. Are you putting any smart home technology in?

Terry Story:  No, I don’t care for talking to a device that’s going to turn on my lights.

Steve Pomeranz: Yeah.

Terry Story:  I like to get up and turn on my own lights. Plus, I’m a little freaked out as to who’s listening.

Steve Pomeranz: Yeah.

Terry Story:  That’s me.

Steve Pomeranz: There seems to be that thing, if there’s a camera in your house, even if it’s looking out, this access in.

Terry Story:  Right.

Steve Pomeranz: Whether we’re just, we have lay-person fears and we don’t really know what we’re talking about. It’s still a fear, mind you.

Terry Story:  It’s a fear.

Steve Pomeranz: Okay. Another trend could be, or is expected to be, sustainable real estate with environmental and socially conscious business practices being a much more important part of the real estate equation.

Terry Story:  Yes, that’s true.

Steve Pomeranz: You’re seeing that now, by the way?

Terry Story:  I do. I think people are more conscientious of the environment, so they are looking into it. Just take for example the light bulbs.

Steve Pomeranz: Yeah, the new LEDs, yeah.

Terry Story:  LEDs, so everyone’s getting rid of the older ones and they’re putting in the LEDs, so that’s just one small example.

Steve Pomeranz: Also, you know, I hated paying more for the LEDs, but I have these high ceilings, and they don’t burn out.

Terry Story:  No, they don’t. They’ll outlive you. It’s kind of like a parrot.

Steve Pomeranz: I never thought of that. I’m never getting a parrot. But anyway, so the LEDs are definitely a move in that direction. Now, affordability, that doesn’t tell me anything. But transportation, mass transportation is going to be extremely important.

Terry Story:  Yeah, we’re seeing that here in South Florida. You know, they’re bringing the Bright Line down further.

Steve Pomeranz: Yes, yeah.

Terry Story:  I’ve had people, you know, comment, “Listen, I don’t have to go to Miami that often, but when I do, I now know I can hop on the Bright Line.”

Steve Pomeranz: Yeah.

Terry Story:  They’re looking to move further out from, they don’t want to be in Miami and they feel they want to be in good schools that they can come out to Boca and have that easy access to mass transit.

Steve Pomeranz: Well I never would have taken a train down to Miami, but now we’re considering doing that because, first of all, I think the train’s nice, it seems like fun, and the connections are pretty good from what I understand.

Terry Story:  Yes.

Steve Pomeranz: I’m hearing positive feedback when people use the Bright Line.

Terry Story:  Yep.

Steve Pomeranz: It makes me want to try that. I can see now if you, because really, the traffic is horrendous now.

Terry Story:  It’s getting really bad.

Steve Pomeranz: So, if you can avoid that by going mass transit, I think that’s pretty attractive. All right, so mass transit is going to be an important thing. All right, so let’s stop right here, take a little break so I can organize. Another thing that people are going to be looking for in the future are amenities. They want dog runs, they want roof decks, they want workspaces. Those are becoming important, especially in urban areas. Are we seeing anything like that down here?

Terry Story:  You know, we are, Steve. As a matter of fact, there’s some communities that are being built North and West of us, way the heck out there. They offer so much in amenities that people are willing to do the commute because they have so much to offer them. While they feel like they don’t have to leave their environment. It’s almost like country clubs with all-

Steve Pomeranz: Oh yeah, so it’s all self-contained.

Terry Story:  It’s all self-contained. There’s some communities that are building, they’re putting in regional hospitals. I mean, big cities, they’re almost like cities, new cities.

Steve Pomeranz: Well, you know, considering how far West those places are and how long it takes to go East now because our highways are so clogged, you can see that they’re trying to make everything just stay out there.

Terry Story:  Just stay out there so you have no need to come back.

Steve Pomeranz: So these people, they will never see the beach again.

Terry Story:  Right. You’re going to stay in the community and be happy.

Steve Pomeranz: Okay. All right, so some other future trends. Someone says, look out for the silver tsunami in which 77 million baby boomers will have to sell homes to downsize and move to retirement facilities in the upcoming years. According to researchers at Zillow, 9 million of these residents will hit the market between 2017 and 2027.

Terry Story:  That’s good.

Steve Pomeranz: So, there’s your inventory.

Terry Story:  Right, there’s my inventory, I just have to wait seven more years.

Steve Pomeranz: What are these silver-ites going to buy? That’s the question.

Terry Story:  That’s always the question, yeah.

Steve Pomeranz: By roughly 2037, 21 million homes will have been sold as a result of the baby boomers, and let’s see what else this says here. The real estate industry from rental to resident and residential to commercial will rapidly transition from a manual and paper-laden process, which it is.

Terry Story:  Yes, it is.

Steve Pomeranz: To the end-to-end digital experience in the next 10 years. Investors have been pouring money into prop-tech ventures that utilize machine learning, artificial intelligence, and real-time big-data analytics to cater the needs of tech-savvy millennials and gen Z who continue to take over the market as the main demographics of renters. So yeah, I mean look, the paperwork is ridiculous. It’s so old school.

Terry Story:  It’s definitely going paperless, even signing your closing documents.

Steve Pomeranz: I think eventually renters will be able to lease an apartment in a matter of minutes by filling out a few questions, snapping a selfie, and that will enable an algorithm to quickly build and vet their application in real-time. Long time coming for that kind of stuff.

Terry Story:  Yep, I can see that happening.

Steve Pomeranz: Yeah, me too. Okay, we are out of time. My guest as always is Terry Story, a 31-year veteran with Keller Williams located in Boca Raton, and she can be found at terrystory.com. Thanks, Terry.

Terry Story:  Thanks for having me, Steve.