Trending Up: Which Trends Will Continue in 2021?

Most of us are ready for a year unlike 2020 in just about every way possible, but some things from 2020 will linger in 2021--  especially when it comes to the real estate market. One similarity that will remain: the market is seller-friendly. 

Market trends

Mortgage rates will remain relatively low as the economy continues to recover from the pandemic, so if you’re looking to buy in 2021, don’t be discouraged. Younger Millennials, in addition to Generation-Z buyers, are both expected to play a growing role in the housing market, as “fast-rising prices will create a bigger barrier to entry for the many first-time buyers,” says Danielle Hale, Realtor.com’s chief economist. Prices will continue to rise as well, adding to the incentive to sell in this market. 

Many home-owners, inspired by the tiny-living and minimalist movements have opted to capitalize on the market, sell their homes, and live the RV life while building their forever homes. New construction is expected to make a comeback, but it may not be quite what it was in 2019. 

Now that manufacturers and builders have had the chance to adapt to COVID-19 environments, production and new builds are expected to pick back up in 2021, overall, adding more inventory to the market, but it may take some time. Higher costs and longer delivery times remain hindrances for new builds. The imbalance between supply and demand will make purchasing a home quite competitive and “further home price appreciation, albeit at a slower pace than seen in 2020,” says Selma Hepp, CoreLogic deputy chief economist.

The  demand for remodels is also expected to grow, and that makes perfect sense considering how much time we’ve all spent in our homes this past year; we know what we like and what we want to improve, which brings us to our renovation trends. 

Renovation trends

Whether you’re looking to make some improvements before selling or simply to make your dream home more dreamy, here are some design trends you may want to keep on your radar. 

• Basement remodels: We all got a taste of stay-at-home-parent life in 2020, and the need for everyone-- kids and adults, alikde-- to release some energy certainly went under the microscope last year. Cool, activity-based projects like building home gyms, rock climbing walls, and even bowling alleys saw huge increases over the past year. A large portion of offices are moving towards increased telework time, if not permanent work-from-home situations, and there’s no signs of that stopping anytime soon. Home “offices” have skyrocketed to the top of the list of home improvements as well.

• Revamped work areas: Remote work has made designing a unique, designated work space a must in 2020. This trend will continue and focus on decor and color psychology and other factors that influence your physical and mental state. COO and cofounder of DecorMatters, Jing Xue, explains: “People will spend more time and effort in designing a unique working space to maximize their concentration, motivation, and productivity. In fact, bright lighting has been shown to make people happier, ambient sounds help people focus, and poor air quality can lead to a drop in productivity.” There’s no better air than fresh-air, either, which leads us to our next trend. 

• The backyard oasis: Gardening areas have certainly increased due to the need to be more “self-sufficient” because of the pandemic this past year. Not to mention, gardening is a fantastic way to relieve stress. Coupled with some more zen-like features, such as a water piece, your backyard can truly become an escape. Other trends have focused on bringing the indoors to the outdoors, and screened-in porches, “she-sheds” or backyard offices, and even guest houses have all soared to the top of the desired lists. Outdoor heating lamps and sunken outdoor fireplaces are all trending as well, as many gathered safely outside this past year. While many of us craved socializing, others looked for ways to escape within their homes to the smallest of rooms: bathrooms. 

• The not-so-tiny tiled oasis: Bathrooms have long been a sanctuary for quiet, alone time-- even if just for a minute or two. Renovating bathrooms to include steam showers or deep, soaking tubs was more common than you’d think this past year. This trend will continue as many homeowners used their new-and-improved bathrooms for “rest and relaxation.” 

Improvements of adding guest houses and basement remodels may be for an increasingly popular reason as well: making multi-generational homes. Your mother-in-law moving in with you doesn’t sound so bad if she’s helping out with remote learning or babysitting the kids while you work from home, right? The lack of childcare options led many to make other arrangements this past year. Mother-in-law suites and “granny pods”-- made to order or do-it-yourself (DIY) backyard cottages and sheds-- can be designed essentially anywhere from Etsy to Lowe’s. 

Whatever the room or area, the underlying ideas behind all of the design trends has been the need to maximize space, make things comfortable, and increase functionality. Extending your space and incorporating spaces to de-stress were both atop the popularity list this past year and will continue to trend in 2021. And if the year turns out to resemble 2020 in the slightest, we will all need to de-stress!