With 2018 underway, the question on many real estate professionals’ minds is: What is the market going to do this year?
Here are the trends our agents think will carry through over the next year.
Housing Market Will Continue to Perform
One item many experts agree on is that housing prices will continue to increase. Some are even projecting increases of 5 percent.
Low availability and high demand will make mid-market homes a hot commodity. Agents should have no problem selling mid-market homes in any locations, but are sitting on potential goldmines if they sell homes in ideal locations with high-end amenities.
In regards to multifamily, rents will continue to rise. With development focus on class A properties, the imbalance of supply and demand in the class B and C product will continue to generate rent increases in these property types as well, potentially causing a shortage of affordable housing in many markets.
Boomerang Buyers Will Hit the Market Strong
Many home owners who lost their home during the Great Recession due to foreclosure had to wait seven years before becoming eligible to buy a home again. For an estimated 1.5 million Americans, that wait is now over.
With both the economy and housing industry expected to improve, many boomerang buyers are expected to hit the market and buy a home this year.
In the past, employers have focused on providing workspace in ideal locations. Now they need to focus on workplace environment, too.
Businesses that craft innovative and creative workspaces will likely see more productivity and have an easier time attracting quality employees. On the flip side, developers who focus on marketing efficiency, amenities, and design and workplace trends will benefit, too.
The Impact of Gen Z
Gen Z (which includes people born between 1995 – 2001) is starting to enter the job and housing market – but their impact is also being felt in the retail industry. This generation is more focused on technology and gadgets, which means brick and mortar retailers need to design stores that enhance connectivity and meet individual preferences.
Contact the DRK professionals for help finding the right commercial or multifamily real estate property to meet your needs. We’ll use our knowledge and resources in central Ohio to help you achieve your occupancy and investment goals!