As investors, it’s important to be cognizant of changing and shifting trends. To make informed decisions, it’s essential to have a clear understanding of the current housing landscape on a global spectrum. Each year, business and real estate professionals alike derive different project trends that are expected to change or redefine the industry that. Here are a few real estate influencers for 2018 real estate investment.
Given the consistent trend of rising real estate prices in most areas, micro units have grown in popularity as a more affordable housing option. As Nav Athwal says, “Rental rates have been increasing across urban areas for the last several years, and the most impacted cities have seen a rise in micro units. These well-designed rooms, as small as 200 square feet, maximize every square inch available.” The housing bubble isn’t expected to burst just yet so with a continued rise in rents, we can also expect an increase in micro units’ popularity.
The Improved Tenant Experience
We cover this more extensively in one segment of our Tech Impact series, but how occupants relate to owners is changing for the better. Rather than seeing the rental relationship as a monthly exchange of goods or in other words a monthly rent check, it’s reshaping to look more like an aspect of the hospitality industry. Technology helped to create this more open and accountable line of communication, but we can only expect it to expand over the next year. Implementation pays off for both sides though. New systems alleviate or automate tasks that were previously stressors for property managers. They also open the door for profit increases. As Franco Faraudo says, “Besides these operational gains, landlords are also likely to see increased demand from smart device implementation. It seems that the perceived value of these kinds of amenities are starting to allow for a price premium, especially in younger demographics.”
Rebranding the Real Estate Investor
In the past, real estate investors weren’t as positively viewed by the common man. Property managers and landlords were seen as the ominous and shady characters, but now opinions appear to be changing. As Tracy Royce says, “The stigma around the average real estate investor seems to have faded with the recession but also, the rise of the corporate/national real estate investor is happening as well. I see that niche becoming more competitive, recognizable and digitized in 2018.” Home sellers are more inclined to consider investors and realtors and homebuyers now have to compete for business with investors.