Change is inevitable. And for investors playing the real estate game, monitoring new trends and adjusting accordingly is do or die.
Here are a few examples of the ways in which advancements in tech, travel, and more will impact real estate markets this year.
1. High-Speed Rail
To be able to jump on a train above ground or underground and get to work or home in minimal time? YES PLEASE. No longer needing a car? I’LL TAKE IT.
Transit-oriented real estate developments are becoming hotter and hotter. As more folks wait to buy their first home or want the convenience of getting around without a car, rental housing near rail lines—particularly those of the high-speed variety, which are promised to be completed in coming years in states like California and Texas— check the boxes for tenants‘ needs.
Ease of transportation has been and always will be a huge key to success in terms of real estate developments.
2. Going Green
Across the board, people are becoming increasingly committed to helping the environment. And the younger the cohort, the more true this tends to be.
This factors into real estate in more ways than updating properties with energy-efficient lightbulbs. But yes, green buildings are a must—not only for reducing ongoing costs and for being kind to the environment but also for attracting tenants.
In addition, driving an electric vehicle is very cool nowadays, and catering to the green crowd is just plain smart. Having charging areas for these cars—and even rapid “Supercharger” stations, if possible—is a huge plus.
Is the apocalypse here? Retail-wise, I mean. It seems we cannot go a month without hearing a retailer in trouble.
This leaves their real estate up for grabs. As we continue to see more and more stores close, these spaces are being transformed into micro-apartments, industrial spaces, and even offices.
4. 5G and AI
Tech, tech, and tech. Apps like Netflix are already suggesting TV shows you’d probably like, and soon your phone will be able to download a season for you in less than a minute.
5G is rolling out, which means an immense amount of data can be sent and received at lightning speed. And with artificial intelligence, that data can be processed and used to make decisions, influence buying habits, and assess anything and everything about you more in-depth.
In addition, AI is now being used in buildings for things like amenities, maintenance, underwriting, forecasts, and more. It is truly an amazing time to be alive.
Housing affordability continues to be an issue. Rising home prices and living expenses in conjunction with stagnant wages are causing stress for a huge portion of the population.
The suburbs are likely the answer for many.
For tenants whose salaries have not kept pace with increasing rents, the ‘burbs are increasingly appealing. By creating almost second cities in the suburbs, landlords and developers are able to offer great products at a much lower price.
What other changes have you observed that will shape real estate in the next few years?