Recently, I was featured on NBCRightNow with a discussion about the latest trends in real estate investing. The real estate market is constantly evolving, so keeping up-to-date on the latest trends is crucial for investors and other real estate professionals. Here are some key points to consider.
Millennials are now America’s largest living generation. The oldest millennials are slightly under forty and the youngest are in their early twenties, meaning the number of millennials who are buying homes is expected to increase annually.
Because they’re such an intrinsic part of today’s market, real estate professionals need to cater to their generation. Millennials spend more time on social media than any other generation, and often use it as a tool for research and connecting with businesses. Most of the searching is done via smartphone or tablet, it’s imperative for your websites to be optimized for mobile and your company to have a strong online presence for best outcomes.
For those in real estate development, considering the wants and needs of this generation is important for deciding on property features, amenities, and even appliances.
Technological advances are impacting every industry, and real estate is no exception. For both small and large developers alike, adapting to the change is necessary for business. Crowdfunding platforms are one of the most prominent ways technology has changed the game for real estate investing. Investors can now evaluate opportunities from the comfort of their own homes, and even invest with as little as $1,000. Because of that small minimum, a larger percentage of the population has the means to invest. This is especially great news for small and mid-sized developers.
Technology is also changing the game for how homes are marketed and discovered. People don’t typically check the local paper for listings anymore. Online resources make house hunting easy and convenient. Virtual reality is even expected to be a factor in the near future, allowing for high-quality tours.
For many years now, small and mid-sized developers have dominated the market. In 2015, they controlled 91% of multifamily properties and 86.5% of commercial buildings. There’s a reason for this trend — locals know more about the area they’re developing in, allowing them to make smarter decisions. For example, I’ve lived and worked in New York long enough that I can use my own personal knowledge of the area to influence business decisions for East River Partners, allowing us to take advantage of more opportunities.
The real estate market is ever-changing, and technology is playing a huge role. The best real estate decisions will be the result of careful research and consideration.