While most areas are currently experiencing peak temperatures, the cool weather of autumn actually isn’t far away. As fall rolls in, it’s important that financially savvy individuals know about the growing trends in real estate across the nation. Lets take a look at a few and how they’ll shape the fall months.
The Rise of 18-Hour Cities
Cities like Chicago, New York, San Francisco, Los Angeles, and Las Vegas are all known for being cities that never sleep. And while money is still being poured into real estate in these urban metropolises, we’re seeing some major shifts toward 18-hour cities. These are cities that fall somewhere between 9-to-5 communities, where everything shuts down after office hours, and 24-hour cities, like those mentioned above. Perfect examples of 18-hour cities include Nashville, Charleston, or Portland.
Younger generations love 18-hour cities because they typically have good food, entertainment, shopping, and decent mass transit.
So, as cities become a little more in tune with what people are looking for, those cities are going to see significantly more growth in terms of their population and significantly more growth in terms of businesses looking to move in to those areas, says expert Anjee Solanki.
Local Investing Becomes More Popular
For many years, real estate investors were bold and purchased properties in neighboring states or even on the other side of the country. Times have changed, though, and its considered much wiser to stick close to home. This is especially true for new investors who are dipping their feet into the rental property market.
When you’re first starting out, study the market of your own neighborhood, Houston-based Green Residential suggests. You’re already familiar with the economics of the area, even if you don’t realize it. You’ll have a first-hand account of the many amenities available to potential buyers or renters, and you’ll be able to market it as such.
Millennial Parents Gravitate Towards Suburbs
Millennials have long gravitated towards urban destinations, and often prefer trendy lofts to established homes. However, as the upper end of this demographic ages, millennial parents are starting to move to the suburbs.
But they aren’t the same as their parents. Instead of neatly divided neighborhoods and homeowners associations, millennials prefer little communities that have more to offer. This is resulting in new mixed-use developments all over the country.
Growth in Rental Housing
Did you know that home ownership rates are nearing a 50-year low? Rates have fallen all the way from 70 percent, before the recession, to just a hair above 63 percent this year. While this isn’t exactly a good sign for the economy, it represents an opportunity for real estate investors in the rental property market. Many markets are experiencing increased demand especially when it comes to affordable options.
Disappearing Parking Lots
Are big parking lots and garages really the best use for expensive downtown real estate in major cities? This is a question city planners and investors all over the country are asking. As millennials rely more on carpooling and public transit, the demand for parking lots is likely to decrease in the coming months and years. This could eventually lead to massive construction projects and unique investment opportunities in areas that have previously been off limits.
The Changing Face of Real Estate
The real estate industry moves faster than most other sectors. Even the slightest shifts in economic policy or financial markets can have sudden and drastic impacts on valuations.
Furthermore, as new buyers enter the market, changing attitudes are having an impact on when and where people rent, buy, and invest. Keep an eye on these trends as we move through the rest of 2016.