Are you a real estate investor? Or maybe just curious about current real estate investing trends? Million Acres has a great article summarizing a report from the Urban Land Institute and PwC that looked at the current and ongoing trends facing real estate investors. The article highlighted the following six things:
1. The Move Toward Specialization: The study suggested investors need to look for niche-level investment opportunities such as senior living, hotels, mulit-family buildings, and more.
2. An Ever-Growing Live-Work-Play Mantra: People now want the live-work-play lifestyle in their communities, and not just in cities. Think of it as a 24-hour lifestyle with 24-hour amenities, walk-ability and more.
3. Heat As An Influencer: With rising temperatures across the country, investors need to consider adding or updating systems to keep residents/tenants happy. For example, adding air conditioning.
4. A Focus On Community: According to the article, "Co-living, co-working, ride-sharing, and short-term rental hosting all point to a growing sense of community. People are more willing to share and interact with their neighbors these days, and it’s trickling down to the real estate world by way of co-living buildings, farm-based master-planned communities, and even reimagined office buildings."
5. The Importance of ESG Issues: ESG or governance issues are top of mind for investors, according to the report. The top ESG issue cited was business ethics. It also cited bribery and corruption, occupational health and safety, responsible supply chain practices, waste management issues, and energy use as additional ESG concerns.
6. Boomers Will Make Themselves Known: The population of seniors continues to rise, as does their expected life expectancy. With that comes not only the expectation that seniors will have more years to live, but also more quality years in which to live, work and play. As a result, the need for creative and comprehensive senior housing is a huge need that will continue to grow.
The study also noted the top real estate investment cities:
Austin, Texas
Raleigh-Durham, North Carolina
Nashville, TennesseeCharlotte, North Carolina
Boston, Massachusetts
Dallas-Ft. Worth, Texas
Orlando, Florida
Atlanta, Georgia
Los Angeles, California
Seattle, Washington
And also listed the top cities for home-building prospects:
Raleigh-Durham, North Carolina
Charlotte, North Carolina
Houston, Texas
Nashville, Tennessee
Salt Lake City, Utah
Austin, TX
Phoenix, Arizona
Cape Coral-Fort Myers-Naples, Florida
Dallas-Ft. Worth, Texas
Tampa-St. Petersburg, Florida
Source:
"https://www.fool.com/millionacres/real-estate-market/articles/7-real-estate-investing-trends-watch/," Million Acres.