GOBankingRate recently identified properties expected to significantly rise or fall in value in 2024. Here’s a brief overview of their forecasts:
Potential Growth:
- Historic and Unique Homes: Distinctive and rare homes are anticipated to experience significant value increases.
- Multifamily Units: Due to high mortgage rates and rising home prices, multifamily units near city centers and transit hubs are in demand and likely to appreciate as rent growth exceeds inflation.
- Sustainable and Eco-Friendly Homes: Growing environmental concerns are boosting the appeal of energy-efficient homes built with sustainable materials, especially among younger buyers.
- Starter Homes: Despite their scarcity, starter homes are proving to be excellent investments because of their limited availability and high demand.
Facing Challenges:
- Homes in Climate-Vulnerable Areas: Properties in areas prone to climate events like hurricanes or floods are seen as risky investments due to rising insurance costs and sometimes a lack of coverage.
- Outdated Single-Family Homes: Lacking modern updates and amenities, these homes are less appealing to buyers seeking energy efficiency and convenience, leading to a decline in value.
- Luxury Urban Condos: The pandemic-induced shift from urban to suburban living and the rise of remote work have reduced the demand and value of luxury condos in urban centers.