Real estate investing continues to be a popular and profitable business. Following the 2008 housing crisis, more people have taken an interest in how to invest in real estate. The ventures have changed the landscape of the housing market.
Housing dominates the news cycle in many areas of the country for various reasons. The west is consumed with wildfires. The Midwest continues to battle deadly tornadoes, while the southeast coast beach fronts are losing their coastlines.
Here, we've compiled our list of three real estate investing trends to know in 2022. The markets will be propelled by limited inventory and relocations.
Keep reading to learn what to look for in real estate news.
1. Real Estate Investing Gold Mines
Aggressive buyers deplete premium home inventory. Investors are turning to markets with available older homes and forgotten commercial areas. They can get these properties at a bargain and turn them into massive returns.
With the growing popularity of a remote workforce, people are packing up and relocating to different parts of the country. In 2022 investing in real estate will focus more on revitalizing secondary markets.
The growth in states like Florida is considerable. The 2020 census showed domestic migration gains of 220,890. In addition, international migration increased in every state.
These migrations have had impacts on the housing market. As a result, real estate investment will increase its focus on revitalization efforts.
Secondary Markets
You'll hear the term secondary markets used to describe smaller communities outside of growing metropolitan areas. This is where the best properties, from a financial standpoint, are located.
Commercial properties will change their designations and become large multi-family housing with the mixed-use designation. More developments will share space with retailers and restaurants.
Expect a trend of local governments negotiating with real estate investment firms to include a percentage of affordable housing units.
2. Increased Rent Prices
Renters are already struggling to keep up with rental prices. This trend will continue in 2022. Expect politics to enter the picture as candidates use rent control as a campaign promise.
New developments include more amenities and high-end perks like designer kitchens and SMART technology.
Investing in multi-family housing is a great opportunity for someone wondering how to invest in real estate. Look for real estate investing books to learn how to get in on the ground floor.
3. Cash Offers For Investing In Real Estate
If you have cash on hand, investing in real estate is faster and easier to close deals. Investors will continue to outpace homebuyers when it comes to buying properties.
Expect to see more real estate agents turn to iBuyer software to get information on new properties for clients desperate to buy homes. The jury is still out on iBuyers after Zillow Offers failed to capitalize on their massive investments.
Real Estate Investment Continues To Reign Supreme
Real estate investing continues to grow, and so does the responsibility of managing long-term investments. You can keep the focus on investing by contracting with a property management firm.
Contact Wilkinson Property Management for your Charlotte, NC, properties.
