Millennials have started to enter the real estate world with a focus on suburban areas. This research comes from a study done by the Urban Land Institute. One interesting shift is that the homebuyers in the Millennial group have a strong interest in neighborhoods that have community resources. Millennials enjoy being able to walk through their neighborhoods to reach the local markets and schools.
This trend opens the doors to something from our past: mixed-use neighborhoods such as retail and residential neighborhoods. The keyword has become “amenities.”
In the multi-family properties of today’s market, trash service and parking may be considered amenities, but in the future, desirable housing will include some very exciting added features. You’ll begin to see such amenities such as roof access (for gardens and patios) common areas and even designated work spaces in those areas.
Investors hoping to stay ahead of the curve should keep an eye on comparable properties and other neighborhood offerings.
There has also been a rise in luxury properties and the future of real estate sees this area continuing forward. As luxury housing demand continues to rise, inventory will need to increase to accommodate home buyers.
Realtor.com has also reported that investors in markets like San Jose, CA; Seattle, WA; Boston, MA; and Nashville, TN will see the biggest increases in their housing markets. However, investors across the country should still expect to see these changes.
Another important trend that has been developing is eco-friendly housing features. Eco-friendly building practices have become more possible with changes to tax policies and various incentives that are now available for such eco-friendly features as solar panels and energy-efficient windows.
One finding in the National Association of Home Builders report is that energy efficiency could positively influence the decision of as much as 80 percent of homebuyers. Other features included in the survey were Energy Star appliances and above-code insulation.
Real estate investors with a focus on new construction and flipping houses will do well in the market place when they keep these features in mind and incorporate them whenever possible.
But What about COVID-19?
It’s no secret that the US economy has been greatly impacted by the pandemic, which did cause many real estate investors to become skeptical of the 2020 housing market. In the early months of the pandemic, there was a decrease in potential homebuyers, however, that was short lived.
In fact, the pandemic has brought on a strong interest in rural properties. This trend has developed coincident with people’s concerns over the COVID-19 pandemic and their desire to live in less congested areas.
No matter what is happening in the US economy, historically housing has always been a strong market. Even during the big bank crashes, where irresponsible lending practices led to the housing market being flooded with foreclosures, and resultant price drops, the market still came back bigger, better and stronger than ever before.
There are many factors that precede a crash, such as rising interest rates, bubble bursts, etc., but the experienced investor knows what to look for. The good news is that Real Estate right now and in the future is still a solid investment.
I invite you to consider investing with us. Our investors are making 10 to 20 percent on our real estate deals. Want to find out how you can too? Take a moment to download our Private Investors Packet and see how we do business. We offer and achieve for our investors better-than-market returns consistently. I am always available to talk with you. Feel free to schedule a time on my calendar.