4 Key Factors Affecting Marketing Trends Moving into 2021
Driven by low interest rates and increased wealth due to favorable stock market conditions, home prices and disposable income have risen significantly. Extremely low interest rates are offsetting higher prices keeping the affordability index low.
Shifts in housing demands away from urban to suburban and ex urban have impacted prices. For example, New York City is experiencing significant vacancies and discounts on rentals.
Immigration has fallen sharply and families are delaying child birth to later in life. Covid could also have a significant effect on family starts. Population projections are indicating a decrease.
There is tremendous short-term strength in new construction and home improvements. Housing starts are roaring but fulfillment issues going forward are tied to availability of skilled labor. Residential home improvements are on the rise due to stay-at-home orders and the need for home offices. But again, struggling with labor issues.