Where People Are Moving and Why
Grow your investments by keeping up with what types of properties and locations are in demand.
As a real estate professional it is important to stay informed on where and why people are moving. These trends can help determine what type of investment, and where, would most benefit you.
Trending Properties
Many markets around the U.S. have seen expansion in all different types of real estate developments. However, specifically single family rentals and multifamily rental properties have experienced major growth over the last two years as more people shift to hybrid or work from home schedules, allowing them to move out of the city and into suburban areas. Whether people are forced into renting due to financial reasons or they are choosing to rent due to lifestyle preferences, the bottom line is that more people are renting. Rents are increasing rapidly and vacancy rates have dropped significantly in many markets.
Single family rental properties can certainly add value to an investment portfolio, especially as more and more families are being forced into renting due to the high interest rates and elevated property values. While tenants of single family rentals are typically more reliable, multifamily rentals offer a slightly less risky investment providing a likelihood that the property would not sit completely vacant. For example, if one tenant moves out, you still have multiple other units paying rent.
Trending Areas
The SunBelt region such as Tampa, Jacksonville and Palm Beach in Florida have topped the national charts in terms of market growth, making these areas a target for investors and developers.
More states in the Southeast, such as Georgia, the Carolinas, and Tennessee, also experienced a major increase in population growth as these markets are historically known for having lower costs of living, less drastic weather changes/conditions, and more space and access to nature.
Due to a variety of factors, residents contributing to the growth in these areas are made up of all different demographics. It appears that anyone and everyone is finding a reason to move these days.
People will always need a roof over their head, so real estate investing can be a profitable way to invest your money in any market. However, if you’re interested in growing your portfolio specifically with single family rentals or multifamily properties, consider expanding into one of the aforementioned trending areas and take advantage of the surge in demand.
If you have questions regarding financing for single family rentals or multifamily properties contact one of the experts at CALCAP Lending today!
