There’s never a shortage of opinions when it comes to predicting real estate trends. Some areas are easier to predict than others, but there are always X factors that we didn’t see coming. Here are 6 Ali Safavi Real Estate trends that will have sticking power over the next year.
One trend that continues to rise in real estate is single-family rental homes (SFR). Over the last 10 years 3.6 million on these have been added to the market. In 2016 single-family homes for rent were the fastest growing type of rental in the U.S., outpacing apartments. One reason for this wave is that housing crash – pushing many people to rent. SFRs are also extremely attractive for individual investors. Only 2% are owned by large investment firms, and 45% are landlords who just own one unit.
Looks Are Important
The combination of social media and cheaper video equipment has meant a huge uptick in real estate agents using professionals for everything visual – drones, VR, interactive tours, etc. Before this was how you stand out, now your
Real estate investors are always looking for emerging markets. I’ve blogged about the journey of Hawthorne, CAand how that city is now booming after being in the dumps. Texas is by no means in the dumps, but it is experiencing tremendous growth. Corporations are moving their headquarters there which creates great opportunities to invest across the state.
Pretty much every industry has to adopt to technology, and real estate is no different. Websites like Zillow and Redfin are connecting buyers and sellers faster and more efficiently than ever before. Agents must adapt and incorporate to stay relevant.
In many of the nation’s biggest markets housing prices are still on the rise. In New York property is rising between 5% and 10% per year. This is great for those looking to unload property. If you’re looking to invest and have a tight purse, smaller cities are going to be a better option.
Construction vs Inventory
I’ve heard conflicting outlooks about real estate inventory in the coming years. There’s no doubt construction is up and that houses are being built. The question is whether or not enough housing will be created to meet the high demand. I guess time will tell.