Schuler Bauer Real Estate Services

Future of Real Estate in the Country

Future of Real Estate in the Country

There are hundreds of economic activities and real estate is just one of them. But it is nothing like any of the other activities in the sense that it is perennial in nature and serves a mode of investment. Like all other businesses, real estate has changed dramatically in the last few decades and it has become technology savvy and also easier for common people. But no one is sure as to what will be the shape and nature of real estate in the future.

 

The last decade or so have been full of unprecedented events in the real estate market. We have seen dramatic rise in property prices coupled with lowering of mortgage rates followed by a crash leading to the bursting of the housing bubble. The country witnessed very strict norms for lending for homebuyers from the banks and then a slow but steady recovery of prices back to what they were before the crash. Present conditions are rosy for the real estate market and they do not look like changing too much even if interest rates go up slightly. The factors to look at when pondering about real estate future are as follows:

Majority of home buyers would be very young

The biggest age group in America today is that of 23 year old individuals. It represents a population that is ready to take off in its career and dreaming of owning a house. In a couple of years, most of these individuals would marry and settle down. They would start thinking in terms of their own home. This is a very promising scene for the future of real estate. But this is also the age group that banks remain wary of because of loan defaults. The young age of the borrowers might work against the real estate industry in near future.

Industry will be shaped by the activities of baby boomers of today

However, the real estate market is not going to be shaped by these young individuals alone. The 2nd biggest age group in America in present time is that of 54 year olds. Over the next decade or so, baby boomers will form a sizeable portion of the population (only second in size to Millennials). The kind of money at the disposal of this group and their choice in housing will shape the future of real estate in the country.

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