Are you thinking of a good business in 2017? If you have a large capital and you want to maximize its growth potential, consider investing in real estate. This sector is looking bright and cheery within the next 365 days.
The U.S. real estate market has definitely come a long way since the recent recession. The industry is expected to sell at least six million of existing homes in 2017 alone. For this year too, investors and developers will see these trends:
1. There will be a new market in town — the millennials.
Millennials (those born from 1984 to the late 1990s) are going to purchase their first home around 2017. This doesn’t only increase housing demand, but also change the kinds of housing we see as they are more likely to prefer starter homes or condominiums. Nevertheless, investors have to remember these are also those who have an average student debt of $25,000, which can largely influence their buying decision.
2. “Surban” will be on the rise.
Surbans refer to thriving communities that promote live, work, and play in one setting. It’s a mix of urban and suburban living. The area is comprised of different kinds of housing, such as apartments, condominiums, and detached homes. Also found are amenities like shopping malls or grocery, parks and other entertainment centers, and commercial buildings for offices.
3. Labor scarcity may continue.
The positive outlook on real estate doesn’t reduce the challenges faced by developers and builders. These include labor scarcity, which can affect completion of projects, timelines, and costs. To help manage the workforce, companies may invest in construction estimating software or focus on niche sectors like rental homes.
4. Technology will play a bigger role.
In 2017, more real estate brokers and agents will be using augmented reality to improve a property’s marketability. Investors, on the other hand, may be putting more money on smart or connected cities.
Although nothing is set in stone, these real estate trends may hopefully keep you upbeat, optimistic, and prepared for the rest of the year.