The housing sector has been one of the economic pillars of the economy due to the increasing number of people looking for new residential and commercial houses. As the industry progresses, it is expected to take a shift by incorporating new policies and advanced technologies to make it more efficient and cost friendly. Some of these policies and technologies have been discussed below.
It is the policy of the government to help its citizens to acquire houses. However, the cost of owning a residential home remains at an all-time high as depicted by the mortgage market. The government, through the ministry of social affairs, will provide subsidies to the market to lower the cost of low materials and labor. This will have a direct impact on the price of the house, thereby, enabling middle and low-income families to acquire a decent home.
Millennials Owning Houses
There is a perception that millennials are not investing in tangible assets and that they are only interested in virtual reality and computer technology. However, recent research indicates that young generations value home ownership just like the older generations. The study further highlights that most of them have been acquiring houses in various suburbs.
Just like in other sectors, technology will continue to have significant impacts on the housing sector. Most of the construction companies have already incorporated technology in their construction by constructing energy-efficient houses. Moreover, most of the materials currently under use in the construction sector are environmentally friendly. Other technological impacts in the housing industry include security, smart locks, and self-cleaning houses.
Taxation is one of the central fiscal policies that is affecting the real estate sector. A considerable number of real estate investors are arguing that both federal and state taxes are too high, which is having a direct impact on the cost of the houses. It remains to be seen whether taxation policy will stay the same for the next few years. However, it is expected that taxes on raw materials for construction and construction equipment will be lowered to help low-income families to acquire houses.
The changes that will be witnessed in the next few years will be highly dependent on how government policies will be formulated and implemented. However, technology and huge capital injection from investors will also have a significant impact on this industry.