The Future of Real Estate – Northern Michigan & Beyond
The surge in Home Purchases for Young Families
In any discussion of What is The Future of Real Estate – Northern Michigan & Beyond, and home-buying trends, we must look at one of the most talked-about age demographics in real estate: the millennial generation. Millennials are often criticized for their aversion to buying their first property.
However, recent polls and home sales figures point to a changing tide. Millennials seem to be settling down. In fact, over 65% of millennials say they plan to purchase their first home within the next 5 years.
With young families and professionals planning to buy homes in the near future, we may soon see a boom in home purchases.
Because millennials tend to rent longer than previous generations, several developers have built apartments with higher-end facilities to appeal to their older, higher-paying clientele.
These all-inclusive flats may affect millennials’ aspirations for their first house. If so, compact residences with better amenities and easier access to downtown regions may become more competitive.
When many people consider the impact of new technology on historic sectors, they generally think of Uber upending the taxicab industry or Amazon upending publishing and book sales.
However, most sector-specific technologies evolve within the industry rather than displacing it. We may presume that present technologies will improve, but not necessarily change the sector.
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Nonetheless, real estate technology is transforming how consumers buy and sell properties. Several firms are working on improving 3D imagery to create lifelike digital walkthroughs of unbuilt homes. By giving families a virtual tour of their home before construction even begins, this program may transform the way homes are designed. It will be easier than ever to experiment with the features, colors, and options.
Similar technologies will become more common. Every year, real estate will be improved to make things easier for consumers, sellers, agents, and developers. This modest class includes websites that let users to research prospective real estate agents or firms.
Modern consumers increasingly trust online reviews of organizations, therefore the most honest and helpful agents and corporations will stand out. Scams are already at a disadvantage. Overall, online reviews will continue to important.
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Changes in Real Estate Investment
The US property value history suggests long-term real estate appreciation. While annual growth varies, the bigger and longer-term real estate trend rewards most patient homeowners.
In other words, the national real estate market will likely do what it has done for a long time: offer a safe long-term investment.
Now let’s talk about elements of real estate investment that I believe will change in the short term. Two significant predictions come to mind: vacation rentals and residential redevelopment.
Vacation Rentals: As previously stated, most technologies do not revolutionize sectors overnight. In fact, the vacation rental business is one of the few changes. I’m referring to Airbnb, the decade-old startup that allowed homeowners (and even tenants) to earn money from vacation rentals. Previously dominated by hotels and waterfront residences, the sector now demands a large piece of what is otherwise a normal housing market.
Vacation rentals will become more popular. The number of people owning properties to engage in the holiday rental industry will expand, leading to innovations that combine the best of both worlds. As the market gets increasingly competitive, urban investors will need to discover innovative ways to differentiate their properties.
Residential Redevelopment: Active investors have flooded the house-flipping sector. This indicates that the difference between the purchase price and resale value of flipped homes may continue to narrow as more investors compete for the best deals.
House flippers may find it difficult to identify investment properties with enough margin to make essential repairs and still make a profit. This talent will increasingly distinguish successful redevelopers from investors who only find properties at auction.
Inspire yourself to dream big about your real estate plans. Ultimately, we believe real estate has a bright future, especially in Northern Michigan.