Single Family Properties: Rising Demand from Younger People
We’ve mentioned in the past that the market for house flippers has seen a huge resurgence throughout 2018. However, the fix and flip market is only part of the equation. For real estate investors looking for demands rising over the next few years, single family properties will be running strong.
Why Such High Demand for Single Family Properties?
To trace the oncoming demand for single family properties – both as rentals and owned homes – we have to look at the current economy and career trends among younger people in the workforce. People ranging from their early-twenties to early-thirties are purchasing or renting single family properties. The post-university people are taking lucrative contract jobs throughout the United States. Contracts can range anywhere from a few months to a few years. Instead of renting out small apartments, most are earning salaries that allow them to rent larger spaces such as single family homes. The rend has caused many real estate investors to purchase single family properties and rent them out instead of flipping them. If the job market changes, the properties can be sold, but why pass up a reliable monthly source of revenue?
People in their late-twenties to mid-thirties have had the benefit of a job market on the rebound and have been utilizing their skills to build of credit and savings. This population group is also likely to think about settling down and starting families of their own. While they may me transitioning away from the rental mindset, these people are looking for homes they can grow into instead of properties they will grow out of in just a few years.
Doing Some Research
Real estate investors should do some research before deciding whether to purchase single family properties. Look at the demographics of our location. Does a particular neighborhood allow for an easy commute to work? That might not even be a question as many people are once again shifting to telecommuting positions. Are potential clients looking to rent or buy? Are their jobs dependent on contracts or permanent positions? Most importantly, what upgrades and renovations can you make to single family properties to attract buyers and renters?
At Wise Commercial Capital, we offer a wide range of funding options for real estate investors. Whether you are lining up the perfect fix and flip project, converting a property into rental units or starting construction, we can help contact our offices today to learn more.