As more and more people stayed home during the COVID-19 pandemic, perceptions of value drivers in the real estate market have shifted. We have seen surging demand for bigger, multipurpose homes with more amenities coupled with a move from cities to the suburbs and beyond. We have also seen an added emphasis on eco-friendliness and sustainability in homes, thanks to education regarding the impacts of climate change and the use of fossil fuels. Tim Murawski, a seasoned MedTech executive and a recognized leader in the medical device and robotics spaces, recently purchased a lodge-style home in Lake Zurich, IL. His home is emblematic of the new trends we are seeing playing out in the real estate space, and it provides a useful backdrop against which we can better understand new trends in real estate and what the future may hold for private homes, architectural design, and construction.
Sustainability
The first trend is the move toward more sustainable housing. Thanks to improvements and advancements in the solar power space - such as dual metering, high-efficiency rooftop arrays, low-cost solar maintenance, and federal subsidies and tax credits for sustainable energy systems - more and more people are interested in installing solar power systems in their homes. Tim Murawski's residence comes with a large solar panel and does away with a natural gas pipeline in favor of all-electric powering for all home systems.
In general, the resale value of solar-fitted homes is higher than similar homes that are non-solar, although homeowners must consider HOA requirements and curb appeal before moving forward with an installation. That being said, the savings that the average family home can generate by producing electricity on-site - and even selling power back to the grid - can outweigh the costs of an installation. There are even solar power companies that only install systems if the home in question can guarantee savings from having a system installed.
As this trend continues, we expect to see more homes and businesses wean themselves off a total reliance on grid energy, with more power coming from solar panels installed on home and business rooftops.
Eco-Friendly Materials and Accessories
If green power is one side of the sustainability equation, then renewable, locally sourced materials are the other. All of the finishings in Tim Murawski's home are eco-friendly and locally sourced. EnergyStar®-certified appliances also help Tim Murawski's home minimize its power needs, and a tight internal envelope ensures that heating and cooling loss are minimized.
Thoughtful Design
The layout of Tim Murawski's home is also thoughtfully planned and designed to maximize, for example, natural lighting while minimizing the reliance on HVAC heating and cooling. Furthermore, by integrating occupant traffic and the placement of amenities - such as shared spaces, home devices, and common areas - homes built with design aesthetics that are similar to Tim Murawski's home can optimize occupant comfort while simultaneously minimizing power costs and energy wastage.
Multipurpose Function
With the move toward remote work, more time spent at home, and the need for flexible, multipurpose home spaces, we see many new homes like Tim Murawski's maximizing the available space by having dedicated spaces for different activities. For example, homes with home offices and recreational spaces have seen surging demand since the beginning of the pandemic. Tim Murawski enjoys waterskiing, tennis, yard work, and spending time with his family, and a new focus on these kinds of needs by homebuyers across the nation is driving new real estate demand for homes that can provide this type of focus to families.
Location
While high rents and expensive homes were and still are important issues for consumers in today's real estate market, there has been considerable relief for many by being able to steer clear of hotter markets in favor of lower-cost locations. For example, instead of renting or purchasing accommodation in a city center, many workers - particularly remote workers and those with growing families - have been able to relocate to the suburbs or even more remote locations. Tim Murawski's home in scenic Lake Zurich - just an hour or so away from downtown Chicago - is a great example of this.
Many new housing developments are springing up all across the country in suburbs and in communities that lay outside traditional city limits. Everyone from full-time professionals such as Tim Murawski to those in mid-level careers, fresh college graduates, freelancers, and more have all been - in our assessment - positively affected by an ability to look for accommodation in new areas instead of being confined to business or city hubs.
Cost-Consciousness
Finally, one of the biggest trends playing out in the real estate space is the heightened awareness of the cost of accommodation. In fact, many of the factors above, from sustainability and efficiency to design, multipurpose function, and location, are all ultimately tied to the cost of homeownership. While it may seem like large, eco-friendly, and sustainability-focused homes like Tim Murawski's Lake Zurich home are only for the elite, we all benefit from a general industry move toward the use of better materials, smarter home optimization, more aesthetic design, and sustainability. These trends have been picking up steam for some time now. However, for homes built in 2022 and beyond, the blueprint provided by Tim Murawski's residence will likely be replicated and emulated in homes of all shapes and sizes in communities all across the country.
Final Thoughts
Tim Murawski's home was designed by Kipnis Architecture & Planning, where Nathan Kipnis serves as a principal. Nathan Kipnis is also a co-chair of the 2030 Working Group, which is a multifaceted organization that aims to reduce the carbon emissions of homes by 70% against 2003 baselines. We are now almost 20 years into this effort. While Tim Murawski's home ticks all the boxes in terms of efficiency, sustainability, design, and aesthetics, it may take some time for others in the industry to adapt and include similar efficiency and optimization considerations in the homes they design and build. For now, however, we have models such as Tim Murawski's home to look to as a great example of design and efficiency meeting sustainability and aesthetics. From here, the industry can move forward in the right direction.
