Every year several important real estate investment companies put out a report on the up and coming real estate trends in the market. These are generally really long and dry reports, but they do have some good information in them if you know where to look.
Having checked out the latest information from the folks at PriceWaterhouseCoopers, I would say that we are in for some interesting times in the real estate market this year. While I am not exactly seeing a boom in outlandish things such as offshore accommodation or underground houses, there are some trends here I would say we need to all pay attention to this year.
The Rich Will Struggle to Find Something
This almost seems counter-intuitive, but the word is out that the real estate at the top of the market is going to be scarce in the next year or two. They don’t say why, just that those in the market for a multi-million-dollar house may have to settle for one that is only 1.5 million in some markets. Gee – poor them!
Office Rentals Shift
Leases for offices are going through a number of changes. One is that as more rich folks have trouble finding a home, they may opt to instead build for themselves and incorporate their office into that plan. In addition, with the growth of flex-time and distance-working many offices are allocating less space per employee. That means smaller offices, fewer amenities and even fewer parking spaces.
Here Come the Chinese!
And the Europeans and maybe even some businesses from other parts of the world. With the strength of the US market and the need to secure domestic cash in other countries, expect to see more Hong Kong, Chinese and Eastern European money being spent on buying up both commercial and residential properties in big numbers.
Oil Prices and Real Estate
Believe it or not, the fact that oil continues to drop in price is seen as having a big influence on the real estate market. We aren’t talking about it affecting heating oil however, but rather that investors with lower costs may turn to real estate for that extra cash they now have lying around. Even mid-level income earners may find they have more to put down on a home because the gas tank isn’t eating into their cash so much.
Housing Concerns and Renters
Most major cities around the country are already struggling with housing shortages, especially when it comes to low income housing. If urban centers cannot provide low income housing or entry level purchases, we are going to see another big push in the rental market.
After all, people have to live somewhere and if they can’t get into the housing market because of a squeeze in affordable houses, they will rent. So, it might be a good time to think about becoming a landlord if you live in a big city.
Technology Invades Home Buying
It should come as no surprise that there are plenty of apps for looking for a new home. Meanwhile, technology slowly but surely invades every aspect of our lives. Expect to see it take a bigger role in the housing market. Many real estate agents were early adaptors of the idea of using the net to show off homes, today mobile sites make it even easier.