Is Everyone an Investor?! Why Real Estate Has Gotten So Popular

Twenty years ago, real estate was something that some people invested in. Now, it seems like everyone and their brother is an investor, or at least they know someone who is. Since the early 2000s, real estate has steadily gained traction as a mainstream investment option. While the housing bubble and ensuing recession put a damper on things for a lot of folks, the market is officially back up and running, and has been for a few years now.

But what has caused this massive popularity spike in real estate? And what does it all mean for you?

Low Rates & Easy Financing

One of the biggest factors behind the real estate boom is the crazy low rates we’ve had. After the housing bubble burst and we entered the Great Recession, the Feds dropped the rates to try and put some life back in the economy. This essentially leveled the playing field for buyers, extending their buying power and making homes more affordable. It had the same effect on investors, and especially benefited those who needed financing to purchase investment real estate. Enter the huge influx of new investors taking advantage of affordable and easy-to-obtain financing.

Unparalleled Profit Potential

Real estate also has a reputation for having excellent profit potential. While this reputation has been rightfully earned, obviously this scenario doesn’t work out for everyone. Not all investors make the kind of money they dream of, and that’s just a fact. However, this doesn’t eliminate the potential. And it’s that potential that so many people have latched onto, in hopes of realizing financial freedom via real estate investing.

Reality TV

Reality television shows have also spurred real estate’s popularity. Programs about house flippers and rental property and home makeovers have motivated many people who may not have otherwise gotten into the biz. Unfortunately, many of these people are mesmerized by what they see on TV, and the reality of investing is not what they expected. Still, the number of reality shows has only helped to increase the amount of people who see home investing as a viable option.

Easy Access to Information

Lastly, there is a wealth of information about real estate investing that is easily accessible. The internet and all the various devices we have to access it have made gathering information and educating oneself extremely easy to do. Real estate is no longer seen as some complicated, risky process that only “serious” investors can do. Now, the average Joe can hop online, read up a bit, and feel a lot more comfortable buying property.

These are the primary reasons behind the insane popularity that real estate is enjoying, and why there’s been such a surge of new investors in the last decade or so. But is this a good or bad thing? Personally, I think it’s a good thing. Sure, more investors means more competition, but so what? It hasn’t made it impossible for people to find great properties. There are still plenty of deals to be made, and with a more level playing field, the dream of investment has become much closer to reality for people. And that, my friends, is definitely a good thing.