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The housing market is a constantly evolving space, but things could change in a major way in the next five years, as long simmering trends start to surface.

A wave of millennials will be entering the market, and Gen Z will be looking to rent, while smart home technology will finally progress beyond basic home security and will be found in nearly every home. Investors will be putting big money into rental units, as more and more people are priced out of buying in the big cities.

Read on for three real estate trends that will be huge in the coming years:

Millennials are going to start buying. Millennials are well on their way to overtaking baby boomers in Canada. And while a record number have opted to rent or stay at home, that is about to change. They’ve been carefully saving and have their eye on the homeownership prize.

Smart homes are on their way. Smart homes have come a long way in the last few years, and buyers have taken notice. According to a 2016 Coldwell Banker study, 71 per cent of homebuyers surveyed were willing to pay more for a home with smart home automation. The cost of smart home tech has also started to fall, which may mean more sellers choose to invest in it to boost property values. In the coming years, more and more homeowners will likely invest in the tech, until it becomes nearly ubiquitous.

More investors will opt to buy rental units. As prices in Canada’s hottest cities continue to climb, more and more families are choosing to rent. Almost every demographic has seen a surge in rental demand. Hot markets have notoriously low vacancy rates, making rental units an excellent option for investors in the next few years.

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