If you are looking to invest in real estate or even just to acquire a home, there are some trends in the real estate market that are changing the dynamics of this important sector. Many of these trends are caused by uncertainties in the real estate market. Savvy investors should be on the lookout for the following trends.
An Expanding Build-to-Rent Market
In the past couple of years, the build-to-rent market has expanded steadily that this is not expected to change in 2019. This trend is especially observed in new an affordable market and it is driven by the fact that these rental units can deliver significant returns to their investors. This has seen traditional home builders and real estate investors increasingly move into this sector.
Joint Ventures by Capital Partners
Large investors with significant amounts of capital are coming together to form joint ventures with other similar organizations to explore the real estate space. This is because partnering with organizations that already have a presence in the real estate space helps the investment organizations to take advantage of the real estate market without having to build their own platforms. This trend is likely to continue and expand as new opportunities emerge in the sector.
Interest in Single-family Rental Homes
Demand for single-family rentals is growing and this growth has seen increased interest by retail investors. This is especially due to the volatility of stocks and other traditional areas of investment. Real estate provides a solid and reliable space that can help an investor hedge their bets against other volatile investment options. Retail investors are also drawn to the fact that in this particular space, they can choose their markets and the amount of money that they want to invest in each.
Renting over Owning
There is a growing tendency among young people to rent homes rather than own them. It cites a study that compared millennials to baby boomers at the age of 37. It found that significantly more baby boomers owned homes when they were 37 than millennials do. This is because millennials are increasingly drawn to work in the cities and also face significantly more debt (student loans and similar) than their parents did. The net result is that many prefer to rent rather than buy homes.
Creativity to Fill Demand
This means that companies will have to get better at filling the demand for rental units. Some of these creative ways include shared spaces where common areas like living rooms and kitchens are shared while bedrooms are partitioned.
Anybody looking to get into the real estate market will have to understand these trends. You could also work with a certified and experienced realtor in New Jersey to help you navigate through the twists and turns of the real estate market. Call New Jersey’s best realtor at 201.568.5668 or email Josh@NJLux.com today!