2024 Real Estate Trends for Beginners
Very few ventures can stand the test of time and inflation like real estate, when it comes to investments. With a handful of gory Wall Street stories and several failed tales of investments gone wrong, it’s no wonder people return to marketing properties. That said, owning a real estate business is no walk in the park, and it certainly comes with its trials and tribulations. Hence, hiring an experienced manager to guide you might be a good idea, especially if you’re a new investor.
After all, you have to put a lot of money down to acquire a house, advertise, and keep up with the ongoing expenses. These costs can quickly add up and could lead to disastrous results if not managed properly. Even if you invest at the right location and time using a magic formula, several factors can still hinder the success of your business.
Thus, this article aims to empower you with information that can aid your decision-making and keep your balance sheet green. Read until the end to find out the top 2022 real estate trends for beginners.
Online House Searching
Let’s kick off our 2022 rental market projections with the most obvious one. As we move further into the modern era, landlords should expect to go with the flow as the world becomes more digital. These days more and more people are finding it easier to start searching for a home from their devices. Investors looking to capitalize and attract the new tech-savvy generation need to put their vacancies where their target audience is. In other words, if you’re not big on digital marketing, you could be losing out on high-valued tenants.
Savvy investors use the right tools to convert serious applicants to renters without ever seeing them. Through modern options such as 3D tours, virtual staging, and an array of high-quality images, you can win over prospects before they step foot in your home. Seeing as these tools are readily available on your device, it would undoubtedly be worth giving it a shot. Although if you’d like to cut back on the stress or go for a more professional look, you could outsource to an expert.
Rise in Digital Transactions
Besides going online to search for vacancies, tenants expect the process to be as seamless as possible. For instance, if you decide to invest in creating a 3D tour of your units and putting them on the internet, anyone can see it. Consequently, that means you can reach prospective tenants in another state or country. When that happens, it would be massively inconvenient to have them travel all the way to fill an application, especially if they’re weeks away from moving. The obvious solution is to let them fill out an online application, so you can review their offer and consider them.
Moreso, when you’re satisfied with your chosen applicant, rather than meeting up to collect cash or check, they could pay electronically. It might even be a great idea to set up an automated rent payment system to reduce the stress of having to remind your tenants. If you’re into crypto, you could even let your renters know you accept payment in bitcoin or whichever currency you prefer.
Mass Migration to the Suburbs
2020 was a rough year for everyone because of the pandemic. However, now that we live in a post-Covid era, employers see the advantages of remote work. Even with vaccines available, many companies are still sticking with teleworking options or some hybrid version. That frees up many individuals from the burden of living close to their offices and congested urban areas.
Thus, 2022 will experience a mass migration to the suburbs where the streets are less crowded, the air is cleaner, and most importantly, cheaper rent. Since location is such a prime factor in determining real estate success, now would be the best time to start house hunting in the suburbs. It would be best to invest in budding areas with reasonable proximity to social amenities like schools, restaurants, gyms, and more.
As you might expect, the mass migration to the suburbs will most definitely increase house prices. Single-family units which afford occupants more privacy and space will particularly be in demand. That’s because high-paying professionals will make a move to more remote areas as well. Also, it would be best if you considered that more people would be entering the housing market as the average millennial increases their purchasing power.
All that means there’s a limited supply for a growing population of home searchers, and the market is reaping if you invest correctly. Even the oldest Gen Z members might be looking to spread their wings away from home, or at least in college. That means self-contained apartments close to universities might not be a bad idea.
Home Prices Will Rise
Following the trends we’ve listed so far, we expect home prices to rise. Considering the mass migration to the suburbs and growing rental audience, 2022 is sure to be a seller’s market.
Moreso, it’s unlikely that the Federal Reserve’s commitment to keeping mortgage rates low during the pandemic will continue into 2022. Following the normalization of the economy, borrowers can expect their mortgage rates to bounce back. As a result, these prices will trickle down to home prices.
From our analysis, 2022 seems like a good year for the real estate market. We hope this guide was simple enough for new investors to understand and get started on their rental marketing property.
To recap, we see a rise in online house searching and digital transactions. So it would be best to follow the trend and digitize as much of the process as possible. Also, since more people are looking to move to the suburbs, it would be best to start your house searching there. We’re confident that investors that jump on these trends and use them to their advantage will enjoy bountiful returns on their investment. If you’re looking to maximize the efficiency and profit of your business, you can take it a few steps further. Hire an expert property management company to help you navigate the ups and downs of the coming year.