The real estate industry is extremely sensitive to consumer and financial trends both domestically and internationally. As we ease into 2019, there were several real estate trends starting to take hold in late 2018 that should become major influencers in the coming year. The more you know about emerging trends in real estate, the more you can use those emerging trends in your investing strategies.
Accessibility Of Information
Before the Internet came along, real estate investors had to search long and hard to get information on properties and trends. But these days, there is a large contingency of websites that can give any investor the information they need almost immediately. In 2019, real estate investors will start using that accessible information to draw their own conclusions about real estate trends. This means that the days of relying on real estate insiders for good investing information could be over.
Online Financial Transactions
The rapid emergence of blockchain technology and the rising interest in cryptocurrency have both started to creep into the real estate industry. As 2019 rolls along, investors can expect blockchain to become more of a major part in real estate transactions and monitoring real estate inventory. It is not quite clear if cryptocurrency will become part of the real estate industry, but blockchain technology is definitely going to take a strong foothold in 2019.
Retail Property Is Changing
Huge online retailers such as Amazon have helped to play a role in the noticeable disappearance of the American mall, but the altering commercial and retail real estate landscape might not stop there. Repurposing mall properties has been a big business lately, but 2019 might start to see repurposing done with big box department store properties as well as smaller shops.
Millennials Are Going To Keep Buying
Millennials make up a huge portion of the luxury residential renting market, but most people do not realize that Millennials are also buying property as well. The notion that Millennials are not buying residential property will be permanently put to bed in 2019 as Millennials will make significant strides in acquiring more residential property.
The residential construction industry is having a difficult time keeping up with the demands for new properties, and that will continue to affect inventory numbers in 2019. The construction industry in general is seeing its resources stretched way too thin, which means that getting new properties on the market in 2019 is going to be a problem.
Increase In Single-Family Rental Units
In 2019, the trend of rising property values will continue, which will put ownership out of range for many families. The offset for this drop in families buying homes will be an increase in single-family rental units. At some point, rents are expected to start rising and causing families to have to make some difficult decisions.
Real estate investors will need to keep an eye on trends for 2019 that could affect their overall portfolio values. The rise in the need for residential properties coupled with the inability for the construction industry to keep up with the need is going to create some interesting situations for investors.