Things Real Estate Investors Should Watch Out for in 2019

What should real estate investors watch out for in 2019? Like everything else, you’ll find all kinds of opinions from experts. After doing our research, here are the things we believe are most likely to happen this year.

Millennials are Becoming Homebuyers

The Great Recession’s impact on housing, combined with a growing student loan crisis, have made it difficult for millenials to purchase homes. Many of them have been renting or living with parents, saving money for their first homes.

Now that the market has been doing well for so long, millenials will buy more homes in 2019. They’ve recovered from the financial crisis and have a few years of solid finances under their belts. They are tired of renting, since they realize they aren’t building equity for themselves unless they own their homes.

What does this mean for you? It’s great news if you have properties for sale.

Suburbs are Growing

It seemed like everyone was preaching urban over the last few years. You’d think everyone and their mother was trying to move into cities for various reasons.

That just isn’t the case though. Suburb areas around major metropolitan areas are growing rapidly. They tend to combine what many consider the best of both worlds – they’re more affordable than living in the city, plus they have everything you’d need. Stores, gyms, grocery stores, and great schools.

Yes, even millenials are moving out to the ‘burbs. As they start families, they want the best for their kids. The suburbs offer that affordability and are good places to raise a family.

How does this affect you? The rise of suburbs gives you a great opportunity to invest in small residential homes in these areas. Three bedroom homes are usually a safe bet, since they accommodate most living situations.

Interest Rates will Increase in 2019

One unfortunate consequence of a growing, positive economy is rising interest rates. Several interest rate hikes have been announced, making it more expensive to buy new homes.

This isn’t the best news in the world, but this can actually be a good thing for real estate investors. As property gets more expensive to buy, it could reverse the trend of millenials buying homes. Once that happens, having a few rental properties available to give them places to live will be a great opportunity for you.

If you plan on buying more properties this year, consider doing it sooner rather than later. The longer you wait, the more you’ll end up paying for the home.

Conclusion

What else should real estate investors expect in 2019? Home price growth will slow down. Work sharing spaces will continue to grow. Local services that can’t be impacted by e-commerce such as gyms or hair salons will thrive despite growing concerns of retail going away. Automation and connectivity, two benefits of real estate investor software, will make life easier for investors. Think about these trends as you make your investing decisions in 2019, and it will be a great year.

About the author

Justin Stowe

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