One of the drivers behind America’s positive economic growth is a strong housing market. A report by CNBC has outlined this strength, noting a house growth price increase forecasted at 5.7%. However, like all financial markets, volatility remains and change may be afoot.
For an investor or businessman looking to make an impact through the property market, it’s important to tap into new trends. The housing market is set to pan out in a different way than perhaps ever before. Developing knowledge of this will be key to making a profit.
Evolving housing for new age needs
While house prices are up, home ownership remains low. The group most affected are under 35s – Census data has found that only 35% of under-35s own a property, far below the 59% of the next age group. Part of the problem is the nature of living; brick and mortar is expensive, especially in high-density urban areas where many young professionals reside. For a senior investor or building firm, it’s worth looking into prefabricated and mobile properties. Releasing equity on a current property can provide impetus to build these low-cost homes, which tie in perfectly with the trend of flexible working and maximizing available space.
Making use of renting
For both senior investors and construction companies, the prevalence of rental properties is an opportunity. The market is currently in a positive light, for starters; a report by RENTCafé found that 49% of rentals are ‘affordable’ to those on median incomes. Buying properties to rent is a legitimate way to gain equity and make a profit on that equity even without becoming directly involved with the property.
Grappling with technology
Concepts such as artificial intelligence and machine learning are becoming part of the day-to-day discourse. They are becoming more and more common in the home, too; market analysts GFK estimate that 58% of Americans will have a smart home within the next few years, with predictably higher rates among the 25-34 age band. What this means for property investors is simple; new builds need to be inclusive of smart home design. Focus on connectivity in whatever venture you take, whether it’s at home or in the business world; even in office environments, new technology promises to bring smart integration through actively managed workspaces.
The property investment market, whether you invest remotely or as a direct participant, is a lucrative one. There are challenges facing it, however, that will need to be faced off over the next year. Do so and you’re likely to have a valuable asset on your hands.
