Top Real Estate Investing Trends for 2024

NEW YORK, July 17, 2024 (Newswire.com) - Although the World Health Organization declared COVID-19 a global health emergency in 2023, residual effects of the quarantines remain. As the experts at Yieldstreet have noted, one of the sectors experiencing an ongoing paradigm shift is real estate investing. The swing toward remote work has created a number of potential opportunities. 

Here are some top real estate investing trends for 2024.

Commercial Real Estate 

According to the National Association of Realtors, office sector activity continued to slide during the first quarter of 2024. The organization cites a 13.7% office vacancy rate nationwide and says leasing activity is running approximately 30 percentage points behind pre-pandemic levels. While this might come as bad news to those struggling with depreciating positions in commercial real estate, it could signal an opportunity for investors looking to get into the market — or expand their holdings. With some $2.2 trillion in commercial mortgages expected to mature by the end of 2027, market distress of this nature tends to create potential opportunities for investors with cash on hand to acquire properties outright.

Opportunities in the Sun Belt 

Comprising 18 states, ranging from central California to southern North Carolina, the Sun Belt is said to be home to some 50 percent of the U.S. population as of April 2024. Additionally, the U.S. Census Bureau notes 80% of population growth occurred in that region over the past decade. The pandemic’s acceleration of remote work made it possible for many people to live wherever they’d like because good-paying jobs are no longer concentrated in large population centers. Meanwhile, the cost of living, property values and taxes tend to be lower in most of the Sun Belt. This has the potential to create opportunities for investors in residential properties in these areas. 

Single-Family Housing Shortages 

The migration to the Sun Belt and its suburbs has exacerbated demand for single-family homes. However, supply isn’t keeping pace. In February of 2024, Newsweek cited a shortfall of some 7.2 million homes, which has persisted in the U.S. since 2012. Meanwhile, millennials are currently maturing into the home ownership phase of life. As a result, demand for single-family housing is likely to increase while the supply is likely to remain constricted. This presents a number of potential opportunities for property management and home construction investments. 

In Summary

The commercial real estate market in traditional metropolitan areas is likely to continue to decline for some time. This presents opportunities to acquire properties at what could turn out to be “sale prices” in the long run for investors who have the wherewithal to ride out the slide. Additionally, housing prices in the Sun Belt’s suburban areas are likely to continue to be high for the foreseeable future, owing to demand. This could increase the need for residential rentals as well as property management and new home construction opportunities. 

Source: Yieldstreet