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While it is her job to be optimistic about the state of real estate investing, Rebecca McLean believes her industry research backs up her sentiment.
Rebecca, the Executive Director of the National Real Estate Investors Association (National REIA), shared her research into the state of the real estate industry during her keynote presentation at Equity Trust’s recent Wealth Building Summit.
She shared that individual investors continue to make up a large share of the real estate investment market, and that number continues to increase.
Rebecca provided several takeaways about how the real estate industry might take shape in 2019, including these five points:
1. You can’t ignore Millennials
Millennials make up 68 percent of first-time buyers, according to the Federal Housing Administration (FHA). This is worth noting because research shows they shop for housing differently and value different amenities than previous generations, Rebecca said.
Trends involving Millennial house hunters, provided by the FHA, include:
- They want more space – not necessarily for children but for pets and belongings
- They’re increasingly moving to the suburbs – 49 percent seek a place in the suburbs, compared to 21 percent looking to buy in an urban setting
- 50 percent of millennials want to be able to walk to shops and restaurants from home
2. Consider the unique housing needs of seniors
Another growing demographic among buyers and renters is the senior citizen population. The U.S. Census Bureau projects that by 2035, older adults will outnumber children for the first time in history.
Investors may want to consider making investment properties more senior-friendly with amenities such as grab bars in restrooms and first-floor bedrooms, Rebecca said.
3. Starter homes becoming more scarce
More homeowners are choosing to stay in their houses longer, according to the U.S. Census Bureau, which means that fewer starter homes are coming onto the market.