Part of being a successful real estate investor involves making sure you stay up to date with the industry – and perhaps even try to see a glimpse of the future, too. Below are some of the trends that real estate investors will likely see in 2021 and some things they can do to ensure they stay on top of the game.
Suburbs will be Incredibly Popular
Due to the restrictions in place because of COVID-19, many businesses (and employees) have discovered the many benefits associated with working from home. Whereas they may have moved to Los Angeles or New York City or even Downtown Minneapolis to be closer to their jobs and shorten their commutes, they’ve begun to work at home, instead. Because employers and employees alike have realized the benefits involved in working from home, this trend isn’t going anywhere. In 2021, the suburbs will be booming, and properties here will likely sell very quickly.
Evictions and Foreclosures will Abound
Another important consideration when it comes to investing in real estate in 2021 is that there will be numerous evictions and foreclosures. Though there have been moratoriums in place for months in many places, tenants who can’t pay when those moratoriums are up will likely be evicted, and homebuyers who can’t make the mortgage payment will find themselves in foreclosure. Unless additional measures are put into place between now and 2021, you’re likely to find plenty of cheap foreclosed homes and perhaps even multifamily complexes for sale.
Supply will be Greater than Demand
When it comes to actually selling properties once they’ve been renovated or built, that’s where things may get a little tricky going into next year. With so many people moving to the suburbs – and with so few people having the means to actually buy homes due to the economic impact of the pandemic – it may be best to focus your time and effort on rentals, instead. That isn’t to say you won’t sell a home, of course; there are exceptions to every rule, so be sure to consider the location and the local markets, too.
Multifamily Properties will be a Stable Source of Income
Multifamily properties will offer some of the most stable income moving into 2021 due to the demand for affordable housing. After all, apartment living is typically much more affordable when it comes to rent prices, so following the pandemic, more people than ever before will be looking to sign leases with affordable monthly rates. In fact, some experts believe that multifamily rents will increase in many parts of the country due to the limited supply and increased demand, so this could be a good investment move for any investor.
It’s important to note that these trends are not set in stone and anything could still happen between now and early 2021. If there’s one thing 2020 has taught us all, it’s that things can change in drastic ways seemingly overnight. Nevertheless, these expected trends can help you start thinking about where you want to take your investing career next and perhaps even help you make better, smarter choices.