The real estate industry and U.S. property market continues to change rapidly, as do consumer needs and likes. Those real estate investors which stay on top of the shifting trends will be those that realize the best gains, maintain strong yields and ultimately boast the best total returns.
So how are current factors changing market dynamics, and how can landlords with portfolios of single family rentals as well as commercial and multifamily real estate investors better capitalize on the opportunities out there?
6 real estate industry trends to watch:
Video has been an emerging real estate marketing trend for a while. However, it is no longer just for showing off luxury home listings. Thanks to ever better technology, and of course customer preference, videos are no being used to promote a wide variety of commercial properties, including rental apartment complexes. It helps tenants maximize their time and make decisions, and can certainly make units and communities stand out as a top choice.
2. ‘Spiritual Spaces’
Choosing which improvements or upgrades to make continues to be as confusing for many multifamily apartment building landlords and corporations as it is for small residential fix and flip investors. Surprisingly, the Wall Street Journal reports that ‘spiritual spaces’ are now one of the hottest trends. While some have splurged hundreds of thousands of dollars on creating complete chapels, great value can be added with incredible simple and high ROI yoga studios and meditation pavilions.
Work and technology trends are also putting pressure on landlords. More people are working from home, and more family members have multiple devices and stay online longer. This is driving more demand for larger home offices, higher tech homes, and can mean apartment complexes with business centers and multimedia centers are more attractive to prospective tenants.
4. Industrial Real Estate
According to several new reports and the CCIM Institute industrial real estate is heating up. This is with special thanks to a huge boost and forecast growth for mobile and e-commerce. It might be a huge gamble for most real estate investors, but can be capitalized on by proximity investing in housing and office buildings.
5. Foreclosure Help Drying Up
Between the expiration of the Mortgage Forgiveness Act at the end of the year, and Bloomberg reporting banks almost done funding foreclosure relief programs under the massive mortgage settlement the new round of property owners falling delinquent are likely to be very limited in options. This provides increased opportunities for distressed debt and property investors to scoop in and take over property and loans.
6. The Hunt for Affordable Housing
While surging rental rates have been a blessing for investors, combined with the recent economic turmoil have resulted in thousands of families being priced out of housing in the Northeast. Expect to see more moving out of New York, DC and Boston to more affordable areas like Worcester, MA – increasing demand.