Almost 2018 : Time for trends.
It’s a recurring story. The new year is approaching and so are its trends. But what are next year’s predictions?
Well, you will have the challenging task of changing with the market and being responsive to your clients’ needs. Whether it is a buyer looking to purchase a new house or a seller looking to get the best price for his home sale, you will need to stay up on the trends of 2018 and be ready to respond to a growing demand for real estate.
Below 9 hand-picked trends that can inspire you to get it done.
Co-living and community-driven spaces
Co-living and community-driven residential will increasingly have a larger impact on the multifamily industry as it changes to reflect a new wave of renter demands and wants. Just as amenities have defined the last decade of commercial real estate development, the need for unique experiences and services will heighten competition.
The rise of the short-term rental market has created a boom in opportunity for large property owners or the single-family owner. Priorities range from renting a room occasionally for extra cash to renting entire vacation homes at three to five times the local and regional market since you now can access a global community.
“You will have the challenging task of changing with the market and being responsive to your clients’ needs”
As peer-to-peer lending and crowdfunding catch mainstream attention, folks looking for greater diversification and passive investment opportunities will engage in factional investing. The last few years have seen some extremely credible startups innovate in this space, and next year could lead to individuals moving away from sole ownership to fractional ownership via crowdfunding.
Tiny apartments and mobile living will be a solution to increasing housing density in overpopulated areas. This will become more of a norm in big cities and will drive up operating income on existing apartment stock. This likely won’t have a huge effect on 2018, but it will over the next decade.
The rise of the real estate investor
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. That niche will become more competitive, recognizable and digitized in 2018. Many home owners won’t think twice about entertaining an investor offer alongside considering selling with agents.
On-demand access for renters
Renters are too busy to sweat the small stuff. They want immediate tour confirmations, like booking a restaurant on OpenTable, and near-immediate confirmation that they have leased, like booking a hotel. This real-time service expectation from a new generation of renters is exactly what has to be catered to in 2018.
Growth of private and alternative real estate investments
Consumers will continue to invest more capital into private and alternative real estate assets, as public markets remain at record highs across all major asset classes, and comparable yield risk remains favorable to private real estate vs. higher risk bonds and equivalents.
The rise of micro units
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 new buyers are millennials and we all need to become more proactive in the community to become that millennial choice. This generation has many different options for home ownership including tiny homes, investment homes and coliving situations with friends or family.
But this is for 2018.
For now, have an unforgettable end of this year. We wish you lots of success and fun! And let’s meet next year to make it happen.