- The number of properties in the US has steadily risen since 2015 due to increasing demand, low-interest rates, and a larger investor pool.
- Short-term rentals have become popular among investors, who recognize the potential for good returns from investing in properties.
- Technology has revolutionized the real estate industry, making it more efficient and transparent for investors.
- House flipping is a common investment strategy where investors buy a property, refurbish it, and resell it at a higher price.
- Investing in rental properties or REITs is another way to diversify an investment portfolio without owning or managing properties directly.
Real estate is a prosperous industry that has been booming over the past few years. As an entrepreneur, understanding the industry is vital to attain success in this competitive market. One of the most common questions asked among investors is why there seems to be a constant surge in the number of properties listed in real estate. Here’s what you need to know about properties in the country, why their numbers are rising, and how you can invest in these properties properly.
Number of Properties in The U.S.
It’s estimated that about five million homes were sold in 2020. There were also about 822,000 homes added to the market during the same year. The number of properties in the U.S. has been on a continuous rise since 2015, and experts anticipate that trend to continue into 2021 and beyond.
Reasons for The Rise in Property Numbers
There are several reasons why property numbers are increasing in the US:
Increasing Demand
The most significant reason for the increasing number of properties in real estate is the demand for housing. With the population growing at a rapid pace, the demand for housing is at an all-time high. Real estate investors recognize this growing need and are constantly looking for opportunities to invest in properties that align with the current market demand.
Low-Interest Rates
Interest rates are at an all-time low, making it easier for investors to finance and purchase properties. This gives them a window of opportunity to invest in properties and make profitable returns. The lower the interest rates, the higher the investment appetite for investors, thus leading to a surge in the number of properties listed.
Increase in The Investor Pool
The growth of the real estate industry has led to the emergence of new investors in the industry. More and more entrepreneurs are attracted to the sector, recognizing the potential for good returns. As the investor pool grows, so does the competition, leading to an increase in the number of properties listed.
Short-Term Rentals
Investors have found new ways to profit from short-term rental properties. This has fueled a new type of investor in the industry, and the number of properties listed has increased significantly. With the high demand for short-term rentals, investors realize that purchasing a property presents an excellent opportunity to make considerable returns.
Emergence of Real Estate Technology
Technology has revolutionized the real estate industry, making it more efficient, transparent, and accessible. Online real estate platforms have made property listings easier, which has led to an increase in the number of properties listed. Investors can easily access property databases with images and 360-degree virtual tours, allowing them to make informed decisions quickly.
How to Invest in These Properties Properly
There are various ways you can invest in these properties properly. Here are some of those ways:
House Flipping
One of the most common ways to invest in real estate is house flipping. This involves buying a property, renovating it to improve its market value, and reselling it at a higher price. To ensure your investment yields good returns, you must understand current market trends and choose the right property accordingly.
To get started, you’ll need to find the right home for your flip. Then you’ll need to redesign it. It’s good to have custom residential architects to help you out. These architects can remodel and renovate the property to make it look attractive and appealing. Once you have made the necessary improvements, you can then list it on the market for sale.
Investing in Rental Properties
Investing in rental properties is another great way to make money from real estate investing. You can purchase a property and then rent it out to tenants for a fixed monthly fee or even a percentage of the income generated from the property. This method of investing in real estate requires you to do your homework and research well into market trends, rental fees, and tenant rights to ensure your investment yields good returns.
Investing in REITs
Real Estate Investment Trusts (REITs) are an excellent way for investors to diversify their portfolios without owning or managing properties. REITs own commercial properties such as office buildings, hotels, and shopping malls. They offer investors an opportunity to invest in these properties without worrying about buying or selling them directly.
Investing in real estate can be a lucrative venture if done correctly. Understanding the current market trends and what it takes to invest in properties properly is essential to success. With the right knowledge and resources, investors can profit from their investments.
