6 Reasons Why Now is a Great Time to Invest in Real Estate
Looking back on 2014, it shouldn’t come as a surprise that now is a good time to invest in real estate. But, in case you had any doubts, let’s talk about what else is telling us that real estate investment is a wise path in 2015:
Historic Shortages in Rental Housing
It’s no secret: new construction can’t keep up with demand and more Americans are opting to lease, rather than buy property. In fact, by the end of 2014, the housing shortage was the largest it has been in 14 years. This has contributed to:
With the housing shortage, comes greater competition for rentals and hence a willingness to pay more to land a rental of choice. In Phoenix, rents rose more than 9%, while rental houses across the state now lease about 10 days faster than apartments.
A More Lively Job Market
While there is still some debate about the health of the job market, there is clear indication that hiring activity is not slowing. That means that you can continue to expect a growth in household formation and demand for homes—again that outpaces construction.
People Still Remember the Real Estate Crash
It’s hard to forget, because 5 million homes were lost to foreclosure and many of those families are still in need of improved housing. What’s more, millennials, while looking for homes, are less inclined to buy right now. They are cautious and waiting to feel a bit more secure financially—that sense of security is certainly colored by seeing parents and loved ones lose their homes during hard times. Which leads to:
The Market is Flush with Good Renters
Caution, as referenced above, makes for renters who still want a comfortable home for their family—even if they don’t own it. They are willing to pay premium rents for ideal locations and are likely to move less often. They’re also more likely to take care of the property and add value to the neighborhood—which all translates to higher valued property investments.
There is Still Ample Opportunity to Buy
People who invested or simply owned before the real estate crash are still looking to off-load certain properties in order to regain their footing—even if less foreclosures are available at low prices.
Still not convinced? Give it until spring to confirm that these trends aren’t just seasonal and reflecting traditionally quiet cycles in the fall and winter.