2024 Trends and Forecast: What We See Coming

Randy Hanscom

As we step into the threshold of 2024 at Brand Vaughan Lumber, we are anticipating a landscape of change and innovation within the housing industry.

From shifting interest rates to an increased amount of people wanting to rent homes, 2024 may require builders to pivot their operations to land new jobs and better provide for their existing customers.

By exploring the upcoming trends and forecasts for the new year, we will also discuss how BVL is strategically positioning itself to meet the evolving demands of the market and stay in touch with the needs of its customers.

Anticipated Trends in 2024

2024 is expected to bring about changes in economic policies, potentially leading to higher interest rates. Historical data does not have a clear conclusion that presidential elections have a direct significant impact on mortgage rates, but the uncertainties can have an impact on the housing interest rates in the upcoming year.

This shift could influence how people approach homeownership, prompting a surge in renting houses instead of buying. First-time homebuyers are still well below the average, with 2023 continuing the trend of 2022, and this will probably continue in 2024 as well.

The evolving preferences of homebuyers and renters are a notable trend on the horizon. “More young people want to rent houses versus own houses, so it’s changing the type of product our builders are making,” says Randy. “It’s changing where they’re going to build. It’s changing how they’re going to build and what amenities they’re going to offer.”

While there’s a considerable demand for new housing in America, consumers are looking beyond traditional apartments. They seek amenities and features associated with homeownership but without the commitment of purchasing a property.

There is a demand for new products on the market, and the industry is still trying to provide these new products to customers. “As the industry grows and evolves, it’s going to be our challenge and our pleasure to help figure that out with our home builders and make sure we’re partnering with them to deliver what they need,” mentions Randy.

Impact on Brand Vaughan Lumber

Expanding Service Area

Historically, BVL’s service locations were limited in reach. However, with the changing dynamics and increasing demand for new housing, BVL is strategically expanding its service area.

Stretching North, South, West and East, we aim to support the entire region effectively and efficiently, laying a strong foundation for the next decade. By establishing connections in areas where we were not present before, we are aiming to reach new communities and new markets, showing our dedication to an even broader customer base.

As the trend towards renting houses gains momentum, BVL is adjusting its focus on where and what they build. The demand for new housing has prompted a shift in geographical emphasis. No longer confined to specific locations, we are now capable of catering to a vast and diverse market. 

Build-to-Rent Communities

A noteworthy response to the changing landscape is the emergence of build-to-rent communities. Renters are now seeking the same quality, feel and benefits found in traditional neighborhoods, but at an affordable rent. Builders are faced with the challenge of creating smaller versions of larger, traditional builds with upgraded features — a product the industry historically hasn’t delivered.

We are aiming to follow the new trends and answer the needs and the demands of builders, so they can promptly answer to the market’s new needs. 

Meeting the Needs of a Changing Demographic

The younger generation, just entering the housing market, is showing a preference for renting over buying. The challenges of accumulating a hefty down payment to purchase a new home are steering them towards build-to-rent communities. At the same time, individuals who have built larger houses over the years are looking to sell and downsize to more manageable yet high-quality rental homes.

While we acknowledge the challenges posed by shifting trends and economic factors, the demand for new housing remains robust. The industry is adapting to different products, build schedules and delivery expectations driven by the growing interest in new homes.

Navigating the Changing Tides

As 2024 unfolds, Brand Vaughan Lumber stands at the forefront of change, ready to navigate the evolving landscape of the housing industry. The anticipation of higher interest rates, a shift towards renting and the demand for new housing present both challenges and opportunities. “All of this is continuing to grow at a rapid pace, and it’s actually kind of cool to go see what different people are doing in this area,” Randy says.

By strategically expanding their service area, embracing the concept of build-to-rent communities, and staying attuned to the changing needs of consumers, we are determined to not only meet but also lead in the dynamic market of 2024 and beyond.

The coming year promises innovation, adaptability, and a continued commitment to providing quality solutions for the evolving housing needs of communities on our side, and we aim to follow the market needs to deliver the best solutions to our ever-growing customer base.

If you’re looking for more insights on 2024 or want to discuss a potential project coming up in the new year, contact our team — we are happy to chat with you!