Due to the fluctuating economy, more investors get interested in the real estate market because of its resilience. Yet, to get the most out of it, investors need to be knowledgeable of trends before they become visible to everyone. In the coming years, the real estate market will experience a lot of change from how landowners do business to how people buy houses. Even properties for rent are likely to be affected by these trends. So what are these business opportunities that you should look forward to? This article will help you delve into what these trends are and how real estate investors can make the most of them in the coming years.
Demand For More Livable Space
People from all over the world always want more livable space. A significant increase in demand for residents getting into a single-family rental property to realize more indoor and outdoor space attached to their unit is increasingly noticeable. More activities are now happening inside the house, hence, the need for more space for living, entertainment, work, school, and many others.
Growing Need For Experienced Agents
Renters will always choose experienced agents who have expertise in accounting property management than those who do not. As clients become more knowledgeable and savvy, average-caliber agents will not be enough. With this, part-time agents will slowly fade in the real estate industry while high-performing agents will continue to soar into teams that promote a larger share of total transactions.
Independent Brokerages Will Fade Away
Small independent brokerages will slowly vanish but those that are backed up by corporate or venture capitalists will survive. Brokerages will have to be backed up by larger entities or investors since technology is significantly developing and has all the necessary resources to compete in the market.
Significant Shift To Flexible Workplaces
As we all embrace working from the comfort of our homes, we begin to shift to flexible and versatile workplaces. Given the uncertainties in the economy, a large number of tenants opt to find shorter leases and scalable managed spaces. The demand for fully customized offices will still remain but renters will soon reduce dependence on one centralized building and would prefer choosing shorter contracts and lower costs.
Workplaces Focusing on Health And Well-Being
One thing to look forward to in workplaces nowadays is the impact of the environment on health and wellbeing. Consumers and end-users will choose a place that will enhance their overall health and well-being rather than a place that is merely built for working.
Increasing Number Of Homeowners
The need for stability combined with lower interest rates will empower more people into owning homes. This is something we should expect in the near future as more and more people are now inclined to buy affordable housing.
More People Going To The Suburbs
Remote work has been a trend with the modern technology we now have. In line with this, people tend to migrate away from major cities to more spacious, affordable, and peaceful suburbs. Moreover, young professionals who are eager to buy or rent single-family residences will tremendously grow in the real estate market giving real estate agents more income and more opportunities to work.
Substantial Taxes For Principal Residences
Over the coming years, it is more likely that there will be much expensive taxation for principal residences. There will probably be a slow and steady increase of rental properties in the market due to low interest rates, immigration, and job opportunities.
Demand on Outdoor Amenities
It is becoming a trend for people to spend more time at home giving less importance to outdoor amenities. Properties near parks and gyms that provide park-like settings have always been in demand and give renters more convenience. However, we expect to see in the coming years the majority of residents transfer to properties that feature amenities like dog parks, walking and biking areas, and outdoor cinemas.
Inevitable Inflation Rate
One unstoppable trend that will impact all real estate markets over the next few years is the nation’s inflation rate to move above the benchmark of 2% for the foreseeable future. This change in policy will defeat interest rates on real estate debt, which in turn will stabilize and inflate existing asset prices as investors search for earnings.
Rise of Substitute Solutions for Security Deposits
Property owners will soon replace security deposits or surety bonds in favor of solutions that give more affordability to renters and financial security to owners. People nowadays live paycheck-to-paycheck and deposits are becoming too expensive making it difficult to manage. In the coming years, this will not be an issue at all.
Anyone can take advantage of the current real estate trends by partnering with a professional real estate agent who has expertise in property management and it really doesn’t matter if you’re selling or buying. Several programs are being offered to match with agents in an area. It is best to choose top-performing professionals in the market who’ve earned a seal of trust by actually caring about financial goals and security.
Katreena is a scientist and a life hack specialist. She’s authored scientific journals on biotechnology and molecular biology. To take a break from scientific journals, she puts her mind into writing about lifestyle, health, and sustainability. She strongly believes that kindness makes the world go round.