Times change. Mainly because of the advent of the internet, the real estate business is transforming rapidly. As we move into the future, investors and realtors will need to keep up with the rapid change in technology as well as the economic climate.
The percentage of Millennial homeowners is at an all-time high. Because so much information is instantly accessible to this generation, they are likely to be more well-informed about purchasing property than their parents or grandparents. This means that realtors should be focusing on providing information that the internet can’t; that is, information specific to the property in question.
They are also more willing to invest manual labor into a purchase. This means that a home that could use a superficial renovation might be more attractive to this generation than previous ones.
An internet presence is almost essential to your success. It is the primary way that new home and business owners are going to seek out potential purchases, and this trend will only become more widespread as we move into the future.
It’s likely that future home and business owners will be concerned about the environment. Millennials are more conscious than their predecessors about sustainability, and the next generation is shaping up to be even more so. Future investors who incorporate greener practices will have properties in much higher demand.
The Effects of E-commerce
The rise of e-commerce has its own set of benefits and drawbacks. While the increasing need for warehouse space has been a boon to industrial real estate, the transportation infrastructure in the United States is not equipped to handle the growing number of delivery services. Gridlock and pollution have resulted, especially near logistics centers. Investors should consider the potential effects this could have on land value in the future.
The Future of the Suburbs
Though in recent years many smaller US cities have seen an influx of young residents in urban centers (due to “rejuvenation” attempts by the cities themselves), the youngest homeowners are starting to move away from downtown and toward the suburbs surrounding these cities.
Rising Interest Rates
Interest rates are higher than they have been in nearly a decade, and this trend is likely to continue. Buyers are becoming more cautious, and the more helpful the realtor can be in the decision-making process, the better.