Developers of condominium projects have faced several challenges this year. Construction costs, material shortage, issues the rest of the multifamily industry are all too familiar with. A changing landscape of buyers and a shift in their priorities has made developers refine their projects and review what condominium trends they've seen this year.
While there are few surprises in store for 2024, these housing market experts believe they've found several trends to keep an eye on. Here are five condominium trends, from amenity preferences to market challenges, to watch next year.
Top 5 Condominium Trends for 2024
1. Amenities > Location
Pre-Coronavirus, one of the top factors for prospective homebuyers was the home's location. Buyer preferences have since shifted, as although location is still important, amenities are piquing buyer's interest more.
2. Health and wellness first
Health and wellness continues to dominate the space—fitness centers and swimming pools are two especially sought-out amenities according to Noam Ziv, CEO, El-Ad National Properties. Dog parks and work-from-home areas are also among the most desired features, Ziv told Multi-Housing News.
3. Concierge, hotel-style services
Developments that offer luxury living with all the perks of a hotel are becoming more frequent. Residents expect resort-style conveniences from food options to smart technology, according to Landy Labadie, Vice President of Community Solutions, FirstService Residential.
“Think grab-and-go food concepts, trash valet services, dog walking services, and technology for ease of payment, scheduling and tracking,” Labadie told Multi-Housing News.
4. Luxury smart technology
Speaking of tech, smart appliances and home automation systems are becoming increasingly important for luxury buyers. As is the case for many sectors, tech amenities continue to ramp up as more advancement are made in smart technology and artificial intelligence.
5. Mitigating market challenges
Due to Federal Reserve tightening, mortgage rates have increased and are expected to remain elevated throughout early-2024. As sales slow, the lack of available listings has contributed to price increases and a more competitive market. Condominium developers are faced with supply chain issues and stringent energy codes, leading to rising construction costs and increased expenses for owners.
Overall, the condo market is facing challenges heading into 2024, but continues to adapt to changing buyer preferences and focus on offering luxury experiences.
“As condo inventory rises and new listings increase, we should begin seeing a more balanced seller-buyer condo market,” Ziv told Multi-Housing News for its market outlook series.
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