Now that 2020 has officially come to an end, many are wondering what the housing market will hold for 2021. According to realtor.com, the housing market should return to normalcy. 

Unlike 2020, home sales are forecasted to have a strong spring and summer, with a fall and winter that are less busy. Realtor.com predicted home sales to be 7% higher than 2020 as well. One thing that may not be changing much is inventory. It's expected that there will be more properties on the market and the gap between supply and demand may begin to subside.

The website also predicted that single-family housing will rise 9% as compared to last year, which could help the demand we're currently seeing. Affordability might continue to be a problem in 2021. Mortgage rates reached historic lows in 2020 and are now expect to rise, though they will continue to be reasonable. The expected average is 3.2%, with an increase to 3.4% by the end of 2021. Year-to-year home prices will see a jump of about 5.7%. 

Due to the large increase in people working from home, buyers can expect to see home offices displayed more in property listings. In 2020, the ability to work remotely was a factor that prompted many to buy a home. 

Overall, 2021 will continue to be a good market for sellers. Buyers will see better conditions than 2020 due to an increase in available inventory in the market. The whole article on the 2021 housing market by realtor.com can be found here. 

According to a recent study by Apartment Guide, rent prices are shifting as 2020 winds down. The study found that studio apartments are the least expensive unit at the moment. This is a change, as one-bedroom apartments were previously the most cost-effective. 

The Apartment Guide study also found that three-bedroom units are continuing to see price increases compared to this time last year in the top 50 U.S. markets. In the top 50 U.S. markets, studio, one-bedroom, and two-bedroom apartments have all decreased in rental prices year-to-year. 

The Northeast has seen studio and one-bedroom apartments charge less rent, whereas two-bedrooms are seeing an increase in rent prices. These new trends could be a reflection of household consolidation due to the impact of the COVID-19 pandemic on the economy. Pew Research Center released a report in September that stated that 52 percent of adults aged 19 to 29 are living with their parents because of the pandemic. This was the first time since the Great Depression that a majority of young adults have reported living with their parents. 

Kelli Francis, senior content strategist for Apartment Guide, noted that "in Pittsburgh, studio prices have been falling," and that "one bedroom prices are down 2% year-over-year and three bedroom prices are down 17% year-over-year." Francis also stated that two-bedroom apartments "are the only unit type to experience an increase in Pittsburgh, up 13% year-over-year." 

According to Francis, "These numbers reflect an emphasis on either studio or two-bedroom units in bigger cities and potentially more interest in smaller cities overall," and that "it's possible that single renters in big cities may be looking to downsize or take on roommates, and that more people may be considering life outside of big cities."

​To read more about the current shift in rent prices, read the full study by Apartment Guide here.

A survey conducted by the National Association of Realtors published in Oct. 2020 found that the coronavirus pandemic is influencing younger generations' housing preferences.  

According to the 2020 Communication and Transportation Preference surveys conducted by the National Association of Realtors young Americans are looking for larger homes with more outdoor space, but in walkable areas. The surgery showed that young adults who live in walkable areas tend to report a higher quality of life than those who live in less walkable area. 

The article about the survey published by the National Association of Realtors noted that "Americans under the age of 40--millennials and Generation Z--are the most likely to say their overall quality of life has been negatively affected by the pandemic."

Vince Malta, NAR's president was quoted say that although the pandemic has "dramatically changed people's lives, this study shows that a substantial demand for walkability persists for Americans of all ages."

Along with the aforementioned results, the survey also noted that families with children in school tended to desire detached homes and large yards. Before the pandemic, most Americans preferred smaller yards in a walkable community, according to the survey.

To find out more about what NAR found in its 2020 Communication and Transportation Preference survey, view the full article here.