Zillow released their hot takes for 2023 and they focused on affordability, pooling money, the Midwest, landlords, and construction.
- Affordability. Affordability will continue to be the driving force in the housing market, but there is a good chance it will improve. Zillow believes the market should stabilize as home prices nationally should remain relatively flat in 2023, “and could even fall in the markets most challenged by affordability issues.”
- New Landlords. With so many Americans sitting on record low rates (that we might never see again), there is a large incentive to rent out your house if you are forced to move. Zillow argues that the potential for income, bearish expectations for stock markets in 2023, and a possible big pullback from home buyers “may reinforce the incentive to hold onto those investment properties.”
- The Midwest. While the Midwest did see big price gains, home prices there relative to everywhere else are quite affordable. Plus Zillow points out that the inventory there isn’t in a massive hole and “more homeowners are willing to list than elsewhere in the country.”