From the FoxyAI Team

Let’s take a look back at the real estate industry trends we observed this year:

Real Estate Wrapped—General Industry Trends

2024 was a year marked by rapid shifts in the real estate market. But thanks in part to AI-driven insights, property professionals stayed ahead of the curve. Here’s a look at some of the standout trends of 2024:

First-Time Buyers Driving Demand

Millennials are now at prime home-buying age, and Gen Zers are beginning to join the workforce. As a result, young adults are displaying an increase in demand in the housing market—though it remains to be seen whether mortgage prices and other economic factors will slow the rate of this trend. 

Smart Homes, Smart Investments

The smart home market is growing rapidly, with 41% of North American homes having at least one smart home product. By 2028, this figure is expected to grow to 55%. Properties equipped with smart technologies (e.g., AI-powered security systems and energy-efficient devices) saw higher buyer interest and faster sales. AI trend analysis showed a direct correlation between smart features and increased property value.

Sustainability Pays Off

The real estate industry is experiencing a rise in demand for energy-efficient and environmentally friendly buildings, or “green buildings.” The National Association of Home Builders revealed in a report that the average buyer is willing to pay over $9,000 more upfront to save on utility costs down the line. 

Looking Forward to Next Year—General Industry Trends

As 2025 approaches, we’re already seeing trends that will define the next chapter in real estate. Based on early data, here’s what we can expect:

Hybrid Work’s Lasting Impact

We predict continued demand for properties in locations that offer a balance of accessibility to urban centers and suburban tranquility. Cities with co-working hubs and short commute times will thrive.

Sustainability Goes Mainstream

With net-zero initiatives taking center stage globally, we forecast a surge in demand for retrofitting existing properties to meet sustainability benchmarks. This includes solar installations, water conservation systems, and energy-efficient appliances.

The Age of Customization

AI is transforming the homebuying process with hyper-personalized recommendations. Consumers will expect tailored property suggestions based on their preferences, from location to amenities.

Tech-First Properties Dominate

Beyond smart devices, we predict an emphasis on fully integrated tech ecosystems in homes, offering seamless connectivity, automation, and enhanced security.

These predictions signal a year of growth and innovation. Real estate professionals equipped with the right tools will be best positioned to capitalize on these opportunities.

The Age of AI

Advances in AI have been impressive. The next big thing on the horizon is reasoning, e.g., OpenAI’s recent enhancement of ChatGPT.

Now Let’s Talk About The Gift That Keeps On Giving—AI in Real Estate

AI has proven itself to be a transformative force in property intelligence, offering a constant stream of actionable insights. Here’s how it empowers the industry year-round:

Real-Time Market Intelligence

AI constantly monitors shifts in supply, demand, and pricing trends, providing professionals with up-to-date information and more transparent accessible property metrics, like further advancement in detecting property damages and nuances with computer vision and bringing greater cost and time efficiencies across the value chain. This minimizes guesswork and maximizes strategic planning.

Predictive Maintenance

AI’s ability to predict potential issues before they become costly problems is a game-changer for property managers.

Enhanced Tenant Retention

AI tools analyze tenant behavior to identify patterns, such as dissatisfaction triggers or renewal likelihood. This enables landlords to proactively address concerns and improve tenant satisfaction.

Strategic Decision-Making

With AI-generated scenarios and forecasts, investors and property managers can make informed decisions about where to buy, sell, or invest in renovations including real-time accurate valuations.

AI is empowering better, faster property valuations and more transparent property information across the value chain—for example, using AI Condition and Quality models to inform Automated Valuation Models (AVMs) and AI-powered LiDAR to gain 3D insights from 2D property photos. 

FoxyAI’s models are capable of instantly assessing property conditions and generating actionable insights. Our solutions make it simple for businesses to enhance operations, drive efficiency, and uncover new opportunities in real estate.

AI’s true strength lies in its ability to adapt and grow alongside the market. While trends may change, the value of having a reliable, data-driven partner in navigating these changes remains constant.

Conclusion: Wrapping Up the Year

Looking ahead to 2025, the power of AI will be essential in transforming insights into action. Here’s to another year of smarter, data-driven decisions—and unwrapping even more possibilities.

Happy Holidays from FoxyAI!