Real estate is always evolving — driven by demographics, technology, climate concerns, economic forces, and policy. Based on current data and projections, here are key trends likely to shape the market over the next decade:
Increased Demand for “Missing Middle” Housing
Smaller scale multi-unit housing (townhouses, duplexes, triplexes, garden apartments) that lies between single-family homes and large apartment towers is likely to grow. These options can help with affordability, density, and walkability.Rise of Transit-Oriented & Walkable Neighborhoods
As traffic congestion, climate concerns, and preferences for convenience increase, developments near transit hubs, easy commuter access, and destinations (shops, services, green space) will be more desirable.Sustainability, Energy Efficiency, and Green Building Codes
Buildings will need to meet stricter energy and emissions standards. Expect more pre-wiring for electric appliances or EV charging, solar installations, passive house or net-zero designs, and new energy codes. Climate change, both in terms of regulation and consumer preference, will drive much of this.Technological Integration & Digital Tools
Smart home features will grow more advanced and common.
Use of AI & data analytics for pricing, matching buyers and properties, and forecasting.
Virtual reality (VR)/augmented reality (AR) for property tours.
Blockchain or digital platforms could streamline record-keeping, title insurance, etc.
Demographic Shifts
Aging population: more demand for senior living, accessible homes, and downsizing options.
Millennials and Gen Z entering peak homebuying years, often with different priorities (flexibility, sustainability, proximity rather than size).
Multigenerational living may come back (e.g. adult children living with parents or in accessory dwellings) as housing costs or caregiving needs rise.
More Mixed-use & Adaptive Reuse Projects
Converting underused commercial or industrial space into residential or mixed-use, integrating living with retail, recreation etc. Use of mixed zoning will likely expand.Regulation, Zoning Reform, and Affordability Pressures
Local governments will increasingly intervene with zoning changes to encourage more housing, especially near transit or employment centers.
Affordable housing mandates or inclusionary zoning may be more common.
Policy around land use, density, building codes, environmental impact will tighten.
Climate Resilience & Location Risk
Areas at flood risk, wildfire risk, or high heat will be more carefully considered by buyers, insurers, regulators. Real estate decisions will factor in resilience: green infrastructure, resilient designs, risk maps.Interest Rates, Financing & Affordability
While interest rates move with macroeconomics, high rates tend to dampen buying. But long term, demand likely will push up home prices faster than incomes in many places, unless new supply (especially of affordable housing) keeps pace.Flexible Living & Hybrid Lifestyles
Work-from-home and hybrid arrangements have changed where people want to live. More emphasis on home office, flexible spaces, amenities (outdoor space, wellness amenities, etc.). Co-living or shared space models may gain traction, especially in high-cost metro areas.
Planned Infrastructure & Housing/Development Projects in Andover, MA
Andover is already engaging in many of the trends above. Here are some of the key planned or in-process projects, policies, and infrastructure initiatives, which are shaping real estate in the town over the next 5-10 years (or more).
Town Yard Redevelopment
Mixed-use project: ~165 housing units, commercial space, community building, public plaza/open space. Historic overlay zoning approved.
Brings “transit-oriented” residential/commercial offerings. Enhances walkability and community gathering spaces. Short to medium term (already approved; under development).
1. Multifamily Overlay District
New zoning overlay to allow “missing middle housing” — more options for multi-family units in appropriate areas.
Broadens supply of moderate-density housing, helps meet state requirements (MBTA Communities law), aids affordability. Timeline: Zoning is already approved; the effect will increase as specific development proposals come forward.
2. Housing Production Plan (HPP)
Andover is updating its Housing Production Plan (the previous expired in 2023) with strategies to address affordable housing needs.
Helps shape policy, guide project approvals, and fulfill state statutes. Medium term.
3. Large-scale Development Proposal (1,455 homes on ~804 acres)
A proposal under review to build ~1,455 homes (single-family, townhouses, senior/apartments), commercial space, and trails.
It could be one of the largest housing developments in town; if built out over 10-15 years, this will significantly increase housing supply. It would also require supporting infrastructure.
4. Gillette Campus Expansion (150-acre site, Burtt Road)
Gillette (Procter & Gamble) is expanding operations with a ~200,000 square feet addition.
More jobs, economic activity, and possibly greater demand for housing nearby. This kind of employment center can drive ancillary development (retail, housing for workers).
5. Transportation & Corridor Improvements (Essex Street, etc.)
Andover got a $3.3 million MassWorks grant for improving sidewalks, roadways along Essex Street from Red Spring Road to Elm Square; improving corridor walkability, safety.
Enhances connectivity, supports mixed-use and housing development; walkability improves appeal. Short-term infrastructure impact.
6. Specialized Energy Code
As of April 2025, Andover adopted a specialized energy code for new buildings (residential & commercial). New construction >1,000 sq ft must reduce emissions; houses under/over certain sizes handled differently, with requirements for solar, pre-wiring for electric, etc.
Increases construction costs somewhat, but will reduce energy costs, emissions long term. Attracts buyers/tenants looking for sustainable, lower utility cost homes. Creates new norms.
7. Transit-Oriented Zoning Districts & Historic Mill Overlay District
Zoning that encourages development near transit, mixed use, higher density, and proximity to services. Historic Mill District is one such overlay. Helps satisfy MBTA Communities requirements, supports growth, and makes Andover more competitive. Likely to encourage more compact, walkable development near the commuter rail stations.
What All This Means for Andover’s Real Estate Market
Putting together the trends and local activity, here are some implications for Andover over the next 10 years:
More Housing Supply & More Types of Housing: Because of zoning overlays, large proposals, and production plans, Andover is likely to see more townhomes, multifamily units, and senior housing in addition to single-family homes. This helps diversify options.
Greater Emphasis on Sustainability & Building Quality: With the energy codes and green building mandates, newer housing and commercial buildings will likely be more energy efficient, with lower utility costs, more solar, and greener construction. That can increase appeal and possibly premiums for certified or sustainable homes.
Infrastructure Upgrades and Walkability: Road and corridor improvements that support walkability, plus mixed-use development near transit, will increase the walk-score value of certain neighborhoods. Proximity to MBTA stations and transit-oriented districts will be increasingly valuable.
Affordability Pressure Will Remain a Key Challenge: Even with new supply, land costs, labor costs, and regulatory/compliance costs (e.g. for energy, permitting) tend to keep expenses high. Demand is strong in the Boston-area suburbs, so unless the rate of building (especially of missing middle and affordable units) accelerates, prices may continue to rise faster than incomes.
Regulation & Zoning Will Be Major Gatekeepers: Policy decisions (what is allowed by right, what’s conditional use, how strict building codes are) will shape what kinds of housing get built and where. Successfully deploying overlay districts, streamlining approvals, and balancing community concerns will be essential.
Long-Term Projects Will Span Decades: Some proposed developments (like the large 1,455-unit site) will take many years (10-15) to fully build out, so change will come incrementally.
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