If you’re like many people, the end of one year and start of a fresh one tends to inspire thoughts about upcoming financial goals and results. If you’re thinking about buying property next year, for either the first time or as a seasoned investor, it’s important to think about what the market is like, what spots could be the best to put your money into, and more. Read on for some key real estate trends you need to know right now.
For starters, 2018 and beyond is set to bring more growth in cities across the country. According to research firm PwC, in their 39th Emerging Trends in Real Estate report, Seattle, in Washington, is likely to be the best performing market over the coming 12 months. While Seattle has already grown significantly over the past few years due to its position as the hub of numerous giant tech firms, other factors will continue to boost its appeal.
For starters, the city has a population growth that’s around double the national rate. In addition, it is popular with buyers because it’s rated as a Top five culinary market; has a wide variety of parks, with a whopping 93 percent of residents having the ability to walk to green space; it is a big destination for international visitors; and it has a young, educated population and thriving workforce to boot. Seattle also boasts plenty of capital available for investment and development, and strong demand from investors.
Alternatively, if you’re looking for a place to invest in that’s not quite so expensive, consider a medium-sized city. There is a lot of growth in this kind of market right now because top-tier economic spots such as Seattle, plus places like New York and San Francisco, are straining to keep up with demand and have property prices that match.
Many younger people are now looking for better house affordability, both when it comes to rental properties and real estate sales. They’re searching for more budget-friendly locations that still have decent professional opportunities. For example, cities which are adjacent to primary destinations like New York City and Washington, D.C., are currently really popular, as well as a less expensive, but major metro area like Pittsburgh. Salt Lake City, Utah is growing quickly too, because it boasts a strong local economy; a young, working population; a good choice of outdoor activities, cultural spots and culinary options; and excellent airport connectivity.
Other cities which are set to keep moving on up over the coming year(s) include Dallas/Fort Worth, Texas; Boston, Massachusetts; Austin, Texas; Fort Lauderdale, Florida; Nashville, Tennessee; San Jose, California; and Raleigh/Durham, North Carolina.
Millennials are Starting to Enter the Market
When it comes to thinking about how to invest in real estate effectively, a key consideration is always about who is buying in an area, and what kind of properties and features they’re looking for. If you want to make money in real estate into the future, you should consider the fact that the Millennial generation is now starting to enter the property market in droves, to buy their first homes.
These people, born between, approximately, the early 1980s and the late 1990s, are currently one of the largest group of homebuyers in the country. They’ve had, by now, a chance to reduce their student debt, and to save up money for a down payment (often because they’ve lived at home with their families for longer).
While you might imagine Millennials are particularly keen on buying in urban neighborhoods, in fact they are also purchasing in suburban communities. They are often jumping straight into the higher end of the market rather than beginning with the more traditional “starter home” that older generations did; and they seem to typically like properties where they get access to shared amenities, such as those found in newer neighborhoods or big condo complexes.
Boom in Housing for Seniors
Lastly, on the other end of the spectrum, seniors around the country are also increasingly looking for housing that caters to their specific needs in their later years. As such, there is a boom happening in housing for seniors which likely won’t abate anytime soon because there is such an aging population across the United States.This group of buyers, typically aged from their 60s through to their 80s, is estimated to grow by 25 million in the next 15 years. This means that the present inventory of housing won’t be enough to meet their needs, so prices are set to rise considerably. Seniors are spread around the country and look for a variety of housing types and in various market niches with varying levels of service. You will be able to invest in differing types of real estate to suit these buyers as a result.