Real estate investing can be risky. And tricky. But so are many profitable investments. You always want to buy low and sell high – that’s the whole point of investing in properties. If you’re an expert in the field, then you know what to do and when you should do it but there are certain things that nobody can predict. That’s why it’s so important to keep an eye on general trends, social and economic changes, and be able to tell if they will affect the real estate market and how. What are some of the trends that have an impact on real estate now?
Millennials are getting away from big houses
A big house with an even bigger garden used to be a sign of prosperity. And while huge movie stars and celebrities may still hold on to their fancy villas, according to Sea Pines real estate company, the majority of buyers tend to aim for more reasonable sizes. It’s partly because people are in larger debts these days than in the past, but they are also becoming more and more aware of the necessity of environmental protection, and no waste trend is growing in popularity. Houses need to be smaller and more energy-efficient in order to lower monthly bills and reduce the carbon footprint. Considering that the generation of people entering adult life right now is even more numerous than the previous one, you may expect a rise in the prices of their very much desired first houses.
What about baby-boomers?
Also the previous generation, the baby-boomers, who used to follow their dreams about big family houses, as they get closer to retirement, they no longer need so many rooms. It takes too much time and money to pay the bills and clean the space that they have no use of. They slowly move away to condos and tiny houses that are suitable for a couple, or even to senior housing to be surrounded by people of similar age and mindset.
What’s more, baby-boomers are expected to be the biggest generation of educated people aged 75 or more in history. This means that there probably won’t be enough senior housings, and prices will go up. Many property investing experts say that it will be the most viable investment in the real estate market.
Everything becomes smarter
Technology is constantly developing, now not as rapidly as before, but still steadily. Real estate market is being affected by the progress as well – and on both sides. It means that, on one end, more and more home devices are getting smarter, and on the other, there is a new trend among startups to develop ideas for real estate businesses. Buying and selling properties have become more digitized while smart technology additions (e.g. security cams, digital assistants) are getting popular among both homeowners, and on the rental market as well.
The sense of community is getting more important
It’s not only about being a good neighbour anymore – living in a community it’s more than that these days. For many reasons (the progress of technology, environmental awareness, social changes, etc.) people are starting to look for ways to interact with each other on a daily basis. Things like co-living, co-working or car-sharing are growing in popularity because people don’t want to do things on their own, they want to save money or because they care about our planet. How is it linked with real estate? Co-living buildings, planned communities, even rearranged office space – common areas are very much desired.
Don’t forget about climate change
There still are many people who deny any climate changes, but looking outside should suffice to understand that it’s true. The weather is getting only hotter and it will have an impact on the real estate market as well. First of all, overall building costs will rise, as heat is not a factor that helps the workers nor the materials. Then, you can see that even now more and more developers and homeowners decide to invest in airconditioning; there are places where life without it has become unbearable. Plus, a lot of people can’t stand the heat at all, so they will simply migrate and look for housing somewhere else.
These aren’t all of the trends affecting real estate these days. It would be impossible to cover everything in one article, as it’s constantly changing; problems, fashion and solutions are arising and going away. But if you want to invest in real estate, make sure you have patience and a good eye for observation. You will need it.