Emerging-Trends-2014

The Top 4 Emerging Real Estate Trends

 

Real estate can be as unpredictable as the economy itself. However, many experts have been able to predict some of the top emerging trends currently occurring in the industry today. Industry professionals can use these trends to their advantage.

 

Whether it’s buying a home or selling one, industry experts can steer their clients toward more profitable decisions based on a solid knowledge of current industry trends. Some of the top trends in the industry today include a decrease in homeowners, alternatives in borrowing and lending, an increase in city dwellers, and an rise in home buyers in relation to job growth. Let’s explore each of these trends in a bit more detail.

 

1. Decrease in Home Owners

 

Newly-graduated students who have just entered the workforce have been inundated with student loans, along with other debts, decreasing their ability to own a home. As such, the number of renters are increasing with this generation. Of the ones who are buying, many are doing so at significantly decreased rates compared to homebuyers of recent years.

 

2. Shadow Banking

 

Borrowing standards may become less stringent in upcoming years, with more people turning to shadow banking as a means to secure their new property. Shadow banking relies on private funds from individuals, family offices, and other outside sources in order to work within parameters of new, strict banking regulations. Most prospective home buyers considering this method should seek the advice of a real estate professional.

 

3. Urban Buyers Increasing

 

Urban real estate appears to be emerging for both renters and buyers, with suburban real estate remaining steady. More urban areas are being revamped and redeveloped, and more people are seeking urban public transportation. Easy accessibility to the office appears to be a major player in this trend, along with increasing supply of real estate in urban areas, and increasing affluence of urban dwellers.

 

4. Real Estate Growth Depending on Job Growth

 

As the economy recovers, the real estate market is often dependent on job and personal income growth. As jobs continue to grow and become more readily available, so do resources necessary for renting or purchasing a new home.

 

Will Real Estate See a Major Boom in the Next Few Years?

 

Experts do believe that real estate profits will gradually increase over time, especially in relation to the gradual improvement of the nation’s economy. Personal debt, especially from student loans, business ventures, and other personal matters will still play a large role in many purchasing and renting decisions in the years to come, however, making it unlikely that a major boom in the industry will come anytime soon.

 

Capitalizing on current trends begins with a solid awareness of them. Whether it’s buying a suburban home, city condo, or apartment, trends in the real estate industry will continue to evolve and grow over time.

 

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