What a strange time the last few years have been in real estate. It seems like whiplash: a few months ago the real estate market was booming, and now as interest rates have increased, the market has slowed from the warp speed it was for most of the last two years. Gone are the days of every listing getting tons of showings and multiple offers in a couple of days. Although the market has changed, some trends that started somewhat recently will continue and other trends will start as the market stabilizes.
The first trend that will remain popular in many local markets, especially Bend, will be Accessory Dwelling Unit, or ADU (see The Source article from 8/31/2022 by A'Leah Knight all about ADUs). ADUs have become popular among homeowners for several reasons; rental income, multi-generational living and workspace are the main rationales. Many people have worked remotely living in Bend for years, even prior to COVID. With the trend of remote work getting more popular, people are looking for ways to make their home their office, and ADUs can provide the needed space while adding value to your property. ADU's can allow a homeowner to earn rental income by renting out their ADUs either long term (more than 30 days) or they can rent them out short term (less than 30 days) typically using some sort of intermediary like AirBnB or VRBO. Finally, the trend within the trend: multi-generational living! It seems more and more people are looking for properties that will accommodate multi-generational living, and ADUs are a great way for people to accomplish this, having multiple, separate living spaces on one property. People are always looking for ways to make the most of their property and ADUs allow homeowners to manage this!
Speaking of making the most of your property, that leads us into the next big trend we will see, and that is an increase in home improvement projects. It's not like home improvement has ever been unpopular, but with interest rates rising, many people may look to change things they don't like in their homes versus moving. While plenty of people will need to move for more space, or various other reasons, a good chunk of people will stay put and perhaps tap into some of their equity to remodel a kitchen or bathroom to improve their living space. Some may even try and add square footage or additions to their existing properties to better suit their lives or perhaps even construct an ADU.
The final trend to be discussed has been going on for a couple of years, as millennials have become such a large segment of buyers, is the desire for larger lots. Locally this has made older neighborhoods in Bend desirable because of the prevalence of larger lots. Most homes built in the last few decades have been built on smaller lots, and often are within developments. While these types of homes and neighborhoods still sell, the homes with larger lots tend to be the most coveted over the last few years. Larger lots allow a homeowner to add square footage, sheds, outbuildings or ADUs—all things that are popular among homeowners in Bend.