The housing market is undergoing a transition period, according to experts like Ram V Chary, and investors should be on the alert for new trends in the coming year. Here are some trends investors should watch in the coming year:
For one, the rise of e-commerce is affecting the housing market in a few ways. First, it’s leading to more people living in cities and closer to their places of work. This is due to the fact that more and more people are buying items online and don’t need to go to stores to make their purchases.
This is not good for malls and other shopping venues, but it’s great news for property owners who own homes close to the office or offer easy public transportation access.
Millennials have fueled another trend: they are eschewing homeownership in favor of renting longer. Not only are they delaying marriage and children, which traditionally led to the purchase of homes, but many are opting to stay at home with their parents or move back in for financial reasons.
Millennials have also been slow to embrace credit cards, which could be impacting their ability to save for a down payment on a house. As millennials continue to choose to rent over buying, investors should be on the lookout for properties that make great rentals.
As more people opt to work from home and put in longer hours, they will need to make sure their homes offer them the space and conveniences they need. This means that spare bedrooms and other rooms may not sit empty and could provide another source of rental income if turned into a home office or media room.
Expect to see more homeowners investing in things like storage spaces, entertainment areas, and even gyms in their homes as they try to strike a better work-life balance while saving time and money commuting every day.
As work and shopping habits change, consumers will need to rethink the size and layout of their homes. This means thinking smaller and living within a more compact footprint.
This trend is already evident in smaller houses, condos, and other popular housing spaces among first-time home buyers. For real estate investors, this means there may be an opportunity to renovate or update properties before reselling them for top dollar. It also means looking at older homes that were built before the advent of bigger spaces, as these could become part of a renovation project.
Finally, consumers want to live in a greener and more sustainably developed neighborhoods, which has led to a rebranding of environmental certification marks. As one example, more homes are being built to be LEED-certified after local governments began offering incentives for green builders.
This means real estate investors should look at properties in these areas to ensure they can turn a profit while still complying with environmental standards. It could also mean picking up older LEED-certified properties at good prices and making them rental units if needed.
To read more on topics like this, check out the Home & Garden category