Investing in real estate can be a great way to build wealth and create a passive income stream. Property trends are an important part of understanding the housing market and predicting future home values. If you are an investor, in order to make informed decisions, it is important to have knowledge of current real estate trends.
In this article, you will find five property trends: going digital, millennials as a market, shifting to second-tier cities, listing your property, and how to safeguard your real estate. Read on.
1. House hunting has gone digital
With the development of technology trends including the internet, house hunting has gone digital. The traditional process of house hunting, which involves a series of steps such as visiting multiple locations, researching and comparing properties and neighbourhoods, can now be done online.
According to Forbes: “44% of buyers start their home search online.”
There are tools that provide detailed information about homes, neighbourhoods and local amenities. These tools allow you to filter your search results to find a home that meets your requirements.
To add, virtual tours help buyers such as yourself get an immersive experience of houses without having to visit them in person. By using this digital approach to house hunting, you can save time and money while finding your dream property.
2. Millennials are buying homes
There is a big market for millennials in the United States who buy residential real estate. Those of this generation have been able to secure steady employment and their household incomes have risen. According to Finances Online, millennials, who make up 38% of the market, favour middle and upper class homes the most.
Millennials conduct online research first before making purchases. If you are a seller, you might want to consider offering sustainable homes with lots of usable space for this market.
Additionally, think about promoting homes in populated areas where living expenses are lower. For those who are buyers, the present market means being open and honest with sellers about what you are looking for in a home, as well as enlisting the help of a property lawyer or real estate agent.
3. People are moving to second-tier cities
According to Real Assets Adviser: “In 2022, second-tier cities such as Atlanta, Austin, and Charlotte have seen 10-year population growth of between 10% and 30%, outpacing the 2010-2020 US population growth of 7.1%.”
There is a noticeable trend of individuals and families relocating to second-tier cities due to the following:
- cheaper cost of living
- cheaper business costs
- tax load
- employment growth
- more affordable housing.
Large corporations have also been relocating to second-tier cities from first-tier cities. These capital transfers are thought to spur economic development and raise the value of real estate assets in second-tier cities.
It is anticipated that the influx of money into second-tier cities will roughly equalise capitalisation rates in both markets, increasing the value of real estate in those areas.
4. Listing your home as an Airbnb
Airbnb is a popular platform for homeowners who want to rent out their homes on a short-term basis. It is becoming a popular choice for homeowners due to the many benefits it provides, such as increased income opportunities and flexible rental terms.
Using Airbnb, homeowners can easily attract guests from all over the world. As a homeowner, you can take advantage of traveller ratings to make your properties more attractive.
Homeowners like yourself have the freedom to set your own rental rates and availability schedule, which allows you to maximise your earning potential. You might want to make sure that you get the best price for your rental.
In addition, Airbnb also offers marketing and customer service support, as well as tools that help you manage their rentals more efficiently.
5. Protecting your property
Protecting your real estate is becoming more and more important in today’s world. As the value of land and buildings continues to increase, homeowners are looking for ways to protect their investments. If before, people would agree on renting spaces through word of mouth, this is no longer the case.
Here is how you can protect your property…
Working with a property lawyer
Engaging a property lawyer from the onset can help avoid any disputes and property litigation cases down the line. Property law is a complex field, with many important laws and regulations that must be taken into account, such as ownership rights and zoning laws.
Property lawyers will be able to provide advice on how best to protect your interests when transacting with another party in relation to real estate. By working with a professional lawyer you will be able to reduce your risk of being involved in costly litigation proceedings.
Getting landlord insurance
Landlord insurance is a type of insurance that protects landlords from financial losses due to damage, liability claims and other risks associated with rental properties. It covers the structure of the building, the contents of the house such as furniture and appliances, and also offers personal liability protection.
Generally speaking, landlord insurance policies cover losses due to natural disasters such as storms or flooding, as well as accidental damage caused by tenants or their visitors.
Wrap up
Real estate trends have been changing in recent years. This has created opportunities for both buyers and sellers to capitalise on these changes. One of the most significant trends is the rise of technology, which has made it easier for people to buy and sell properties with greater convenience.
Ultimately, these trends are creating an ever-changing environment that requires buyers and sellers to stay informed in order to make the best decisions when it comes to their investments.