5 Real Estate Market Predictions For 2021

Well, we think everyone can agree that 2020 was full of surprises.

This year spared no industry from a barrage of audibles, the full impact of which remains to be seen. As the year draws to a close, it’s about that time of year to look back at trends that emerged and make predictions about what comes next.

Longstanding real estate market trends that had held steady for over a decade saw sharp reversals. But are these circumstantial blips on the radar, or harbingers of a societal restructuring?

We look for clues to forecast real estate market trends of 2021.

Rent in big cities will drop

Up until this year, rents across the nation had been climbing steadily higher quarter over quarter for almost ten years. 2020 interrupted that: Rental prices in some of the hottest housing markets cooled in the second half of the year..

There were two key catalysts for the drop. Firstly, a huge portion of the workforce went home. For the first time, employees were longer restricted to a radius close enough to the office for a daily commute. Secondly, interest rates dropping to zero made loans cheaper for prospective home buyers.

For the first time in their lives, Millennials will experience a renter’s market.

A renter’s market goes hand in hand with an investment property buyer’s market.

“In places like Manhattan, many buyers have been priced out over recent decades,” says Jesse Prince, Founder and CEO of HappyNest, a real-estate investing app.

“The impacts of COVID may present unique buying opportunities for those risk-tolerant operators willing to bet that effective vaccines are right around the corner, large corporations will begin to repopulate the urban core office markets in the near-term, and business will rapidly return to normal.”

Buyers who picked up rental investment properties during the housing market dip of 2008 enjoyed decade long gains. History might be repeating itself.

Office space will be converted to residential units

Big city landlords aren’t the only ones poised for a tough year. Urban flight could have consequences on commercial real estate owners too. Thousands of businesses went bankrupt this year; needless to say, they won’t be renewing their leases. Many companies that were better fortified to withstand the turbulence of 2020 announced that their employees can remote work permanently, including headcount heavyweights like Google, Shopify, and Nationwide.

Others welcomed the elimination of a recurring lease expense on their P&L – especially those who found their teams were just as productive at home.

Presumably, the combination of these three factors will leave a dent in the demand for office leases. The question is – how big of a dent?

“Whether or not the current trend of urban flight will reverse in the post-pandemic New World remains up in the air – a risk factor that shouldn’t be ignored by developers underwriting any new projects,” Prince says.

Even prior to the Work-From-Home Revolution, the transition from suit to sweats was well underway. According to a research report by GetApp, between 2010–2019, the number of remote employees surged 400%.

Landlords in the right municipal zoning might consider converting their buildings into mixed-use, work-loft properties to fill vacancies faster.

“Converting underutilized office space into mixed-use properties is by no means a new strategy, one that proved effective in several urban markets during the recovery from the Great Recession.” Prince says.

The months following widespread vaccination will be critical gauges on COVID’s impact on office space demand in the coming years. For opportunistic investors, it could also be a rare ‘buy the dip’ opportunity in the commercial office real estate market.

Increase in demand for flexible lease office spaces

Business owners in new or long-term leases found themselves stuck paying for offices they weren’t using for the lion’s share of the year.

As leases draw to an end, business owners across the country will be asking themselves: What value does a shared working environment bring my company and my employees?

In a survey done by Publicis Sapient, only 15% of respondents said they wanted to return to the office full time, 21% said they preferred to work remotely full time, while 64% said they’d prefer a hybrid model with some days in office and some days remote.

Some of those employees just might get their wish.

Workshare spaces are intuitive solutions for what many experts are calling the rise of the Hybrid Work Model. As such, they could stand to benefit as the economy emerges from lockdown – especially in the early phases of reopening.

Businesses, smaller ones in particular, will appreciate the savings on overhead expenses without passing up the benefits of strong team relationships and in-person collaboration.

Other companies endured major economic blows in 2020, and were forced to downsize as a result. A return to a half-full office might prove demoralizing and warrant a location change either way.

With uncertainty still ahead, they may opt for short-term, low-risk leases and smaller spaces until things stabilize.

All of these circumstances could translate into new demand for workshare spaces as a byproduct of the pandemic.

Industrial real estate are poised for double digit growth

2020 brought record growth in the e-commerce sector as stay-at-home orders and pandemic fears made doorstep deliveries the primary means of acquiring goods for large sects of the public.

Though the reopening of retail locations may trigger a pullback in e-commerce activity worldwide, it’s unlikely to fully recede to pre-pandemic levels. Its convenience and wide product availability is sure to have won over former holdouts.

Even prior to 2020, e-commerce was experiencing healthy growth year over year – the pandemic only gave it a boost on its trajectory.

All those orders need to be processed, filled, and shipped from somewhere. That’s why industrial real estate, fulfillment centers in particular, are slated to be big winners for years to come.

“It often pays to follow the money. Goldman Sachs, and other institutions, have started taking large positions in industrial assets,” Prince notes.

Unlike other types of real estate markets, the upside is all but guaranteed. Major retailers including Amazon, Home Depot, Chewy, and Lowe’s have already announced plans to open fulfillment centers.

That makes the industrial sector a highly attractive investment property option with low-risk tenants.

“Industrial services have proven themselves essential during the pandemic. From a cash flow perspective, the risk that your tenant won’t pay their rent is reduced significantly,” Prince adds.

Purchasing industrial real estate as an investment property is out of reach for many investors. But you can enjoy the upcoming gains with whatever capital commitment fits your budget through crowdinvesting apps like HappyNest, which has a fulfillment center currently leased by FedEx in its portfolio of properties.

Housing market will continue to gain value

Months-long lockdowns raised some big questions for city renters, who had mostly seen their apartments as places to sleep, change, and store things.

Prior to 2020, they willfully made concessions in square footage to be in the middle of the big city action.

But after just one month of sharing a 300-square-foot apartment in lockdown, ‘home’ began to feel like a prison cell. Suburbia and small town America never looked so good…and spacious.

Renters leaving the city for some peace and quiet is good news for the housing market. As demand for single-family homes increased in suburban areas, so too did housing prices. Some areas hit record highs.

“People are fleeing urban markets in search of more space for them and their families. It no longer makes sense to pay $5,000+ for a two-bedroom apartment during a lockdown,” Prince notes.

Interest rates are expected to remain low through Q1 of 2021, further stimulating the hot housing market. That will help prospective buyers offset the rising list prices of homes.

“Markets are super tight because building has slowed down while demand has increased. High demand coupled with low interest rates are a recipe for higher home values and top dollar for sellers.”

The 2020s

With the pandemic yet to be fully behind us, these real estate market predictions are based on trends we already saw emerging in 2020.

The vaccine has the finish line in sight, and the post-pandemic world may finally arrive in 2021.

But if 2020 taught us anything, it’s to always keep our heads on a swivel.
 

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What Are REITs and Why Should You Care?

A Quick Real Estate Investment Trust Description
A real estate investment trust is a company that owns, operates, or finances properties. The properties can range from homes to hotels, malls, offices, medical buildings, or any other real estate type.

 

Investing in REITs can be a great way to generate passive income and build wealth through real estate. Perhaps that is why nine out of 10 investors add real estate to their investment portfolio. If you want to diversify where you put your money to grow it steadily over time, you can buy shares of a REIT.

 

Of course, you might be thinking that your portfolio is already diverse, with a mix of stocks and bonds. Why add REITs into the mix? There are several reasons.

 

REITs Can Be Affordable Ways to Get Into Real Estate Investing
Let’s say you want to invest in real estate. That’s a great goal, but it might take a lot of capital to get started and purchase a property substantial enough to generate cash flow. After all, if you are only beginning your real estate investing career, you’re probably going to purchase just one property at a time.

 

Rather than wait until you have enough property to start seeing regular returns, you can use an app for investing in commercial real estate and jump right into the REIT world. No-fuss, no muss, and it’s economical, too.

REITs Can Generate Steady Income Streams
As you may have heard, real estate tends to outperform the stock market over the long-run. A real estate investment trust often provides dividend distributions, that can then be reinvested through dividend reinvestment plans (DRIPs). By reinvesting your dividends back into the REIT, you are purchasing more shares of the REIT, and increasing the potential to be paid more dividends in the future.

 

When it comes time to start reaping the benefits of your investment, you could potentially realize a significant stream of income. And that’s good for your retirement years.

 

The Stock Market Has Less Effect on Public Non-Listed Real Estate Investment Trusts
Are you concerned about stock market volatility when it comes to distributing and managing your investment portfolio? Public non-traded REITs tend to fluctuate in value less than other publicly traded REITs and stocks when the market takes a tumble.

 

Although no investment is entirely immune to market swings, public non-traded REITs are more closely aligned with a pure-play real estate investment and can be less volatile. If your risk profile leans toward taking fewer chances, download one of the best investing apps and look into a public non-listed REIT.

 

Professional Management Teams Oversee the Commercial Real Estate
Let’s say your friend tells you he’s buying up tons of commercial property for sale in the area and wants you to be an investor. Sounds good–in theory. In practice, your arrangement could end up a nightmare, especially if your buddy isn’t a smart money or property manager.

 

Real estate professionals manage REITs. This means that they’ll treat your investment like you would, with care and diligence.

 

The SEC Has Oversight of All Types of REITs
If you choose to invest in a publicly traded or public non-traded REIT, you have the SEC overseeing financials of the REIT. In other words, you don’t have to wonder if the REITs are in compliance. They’re legally bound to follow SEC regulations, or they risk losing their REIT status and could run into legal troubles. This provides you with security that you may not get investing in private equity or a private REIT.

 

Your desire to invest in real estate, even if you can only invest in real estate with $500 or less, makes sense. Over the past 20 years, REITs have proven to be the right fit for investors of all ages, from Generation Z to Baby Boomers. Download a real estate investing app today and have fun exploring the wide world of REITs.

 

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Investing In Real Estate For the First Time!

Whether you love your career and are looking for a secondary source of income or are thinking about changing careers and looking for financial stability, investing can help you achieve both.

Investing may sound scary, but it can be a lucrative, stress-free, and even fun activity for you and your family when done correctly. We’re not suggesting to throw your life savings in the stock market. That is a terrible idea. Instead, take an educated approach by researching investing options and consider investing in real estate to diversify your portfolio.

For the last 20 years, real estate has outperformed the stock market approximately 2-to-1. As long as you have a little money to invest, you can start making some tremendous financial improvements. Here is how to start:

Research the best apps for real estate investors

People have been investing in real estate long before apps were ever a thing. Now, there are plenty of apps for real estate investors that are easy and fun to use! Many people are too intimidated to start investing in real estate because they think they’ll have to shell out tens of thousands of dollars to do so. That couldn’t be farther from the truth. In fact, with as little as $10, you can start your investing journey! Sure, the more money you put in, the more you’ll get out — but starting with a small percentage of your disposable income and some quality apps for real estate investors can undoubtedly help break you into this lucrative industry.

After you’ve downloaded an app and tossed some money in, you’ll be invested in real estate. Then you can set weekly or monthly recurring investments to grow your account value, and your real estate investing nest egg will begin to grow.

Get your finances in order

Again, you don’t need $50,000 to start investing in real estate. But you do need some extra cash on hand, so you’re not risking too much on these ventures. Though investing in real estate has plenty of upsides, it’s still a fallible market. So you need to tread carefully and make sure you have plenty of cash in case of an emergency.

Research everything and start small

Finally, no matter how much you know about investing in real estate, you should always be trying to learn more. Do as much research as you can and make sure you’re comfortable with the real estate before you start putting money into this sector. Also, make sure you’re starting with smaller projects. You can — and should — invest in commercial real estate, but don’t search for gigantic properties right off the bat.

If you’re excited about breaking into this sector and want to invest in real estate, make sure you’re doing plenty of research, saving money, considering top investing apps, and working alongside a trusted investment company to answer all your questions.  

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Using your phone to build wealth

How does the super-rich attain that kind of wealth? Among other financial decisions, they tend to invest in real estate. Around 15% of most ultra-wealthy individuals’ portfolios involve real estate investments, according to figures compiled by Campden Wealth and UBS. Even if you’re not among the wealthiest people today, you can get closer to joining their ranks by leveraging the power of your smartphone and downloading the best apps for investors.

Tips for Finding the Best Apps for Investors

Which apps for real estate investors should you choose? You have plenty of options, which can get a little confusing. However, the best investing apps tend to have the same qualities.
First, the best apps have a proven track record. In other words, people are making money. Poke around the companies website and read the blogs to understand better what they offer. That way, you can be sure that you have the best opportunity to earn residual income that will grow over time.
Next, remember that the best apps for investors explain their investment strategy. The last thing you want is to spend your time guessing about the company’s approach to investment. You deserve to get real information, not tons of head-scratching content.
Finally, poke around for reviews and ratings. Read through them to find out how other people are enjoying the app, right down to its user interface. After all, you won’t use even the most stellar top investing apps if they’re tough to navigate or lock up on your type of device.

Using the Best Investing Apps

Congratulations: You’ve downloaded the best apps for investors that you feel would pertain to you and your investment risk level. Now, it’s time to use those apps to invest in real estate. Otherwise, the app will take up space on your smartphone, which doesn’t make sense or make you money.
Start small until you get the hang of the way the app and investing works. For example, you might only want to invest in real estate with $500 or less. Deposit the amount you’re comfortable investing. Then, wait a couple of weeks to see what’s happening. Remember that it can take time for real estate to pay a dividend. In the interim, consider increasing your investment amount if you have a little extra cash on hand. Eventually, you’ll get the momentum going and improve your confidence in working with apps to build your investment portfolio.
Stop assuming that you have to be a multimillionaire to invest in a commercial real estate company. The best apps for investors, including HappyNest, will help you launch your investing journey right from the phone in your hand.

Download HappyNest today on App Store or Google Play.

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Should You Consider Investing in Real Estate During Your Twenties?

Real estate investment can seem like a seasoned investors game. But the truth is that almost 79% of millennials are interested in personal real estate investments, and about 49% interested in commercial real estate investments. So why shouldn’t you start now? If you’re on the fence, here are a few reasons to consider investing in real estate during your twenties.

Lower Down Payments

The majority of banks will require an investor to put at least 20% down on a rental property. It may not seem like it, but that’s a lot of money for a property that may require significant internal and external repairs before it’s commercially viable. Fear not. Options are available for investors of multifamily properties who choose to occupy one of the apartments in the property. Banks will require only a 5% down payment for an owner-occupied property as compared to 20% down for non-owner-occupied property.
Why is this easier when you’re younger? More often than not, you’ll have the flexibility to move into a home and put the work into it than someone older with a family to factor into the equation.

You Don’t Have to Purchase Property

There are plenty of ways to invest in real estate without buying property. Real estate investment companies and real estate investing apps have made it much easier to access real estate investments. Crowdsource investing allows multiple people to invest alongside each other into a property. You don’t need hundreds of thousands of dollars. With only $500, you can start investing in property through crowdsourcing.

Technological Assistance

There’s an app for that. Literally! If you want an app for investing in real estate, it exists! With apps like HappyNest’s, real estate investing can finally enter the 21st century. And when you can access all of the information you need via an app for investing in real estate, the whole process is a lot less intimidating.
If you’re on the fence about investing in residential or commercial property, don’t wait until the opportunity passes you by. Investing in your twenties might be the best thing you ever do.

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Can Real Estate Investing Bring You Closer to Your Financial Goals?

If you’re like most people, then you probably have some financial goals that you’re working towards. It doesn’t make a difference if you’re trying to get rid of pesky student loans once and for all, or if you’re trying to save up for a once in a lifetime vacation, there’s no denying the importance of setting financial goals and doing everything you can to work toward them. But even the most dedicated people sometimes feel it is impossible to save and make progress. Lifes obstacles and bills can get in the way. That’s where investing in a commercial property for sale or any other form of real estate offers you some options. Here are just a few ways that real estate investing can move you closer to your financial goals, no matter how lofty they may be.

Real estate investing can create substantial passive income for non accredited investors

If you are going to work and paying the bills, it’s easy to feel as though it’s impossible to get ahead on your expenses and move closer to your financial goals. If this sounds anything like you, then you can rest assured in knowing that there are many others just like you. Nevertheless, this way of life can be quite suffocating when it comes to your financial goals. That’s why you need to create multiple passive income streams and set yourself up with assets that provide you with additional income outside of your day job.

Investing in real estate is one of the most reliable ways to generate passive income. Passive income is any form of income that is earned with little to no effort. Some work is required to set up the income stream but after the initial investment, you should be able to sit back and collect. Investing in one or more properties is a great way to receive passive income, all the while, you work your regular day job. The additional income can help you build towards your ideal financial situation.

When you invest real estate apps, they make things quick and convenient so that you can save time

Real estate investing is more accessible than ever. A 2017 study by UBS and Campden Wealth revealed that the ultra-wealthy invest an average of 15% of their portfolio into real estate. But many people make the mistake of thinking that you have to be rich or brilliant to turn a profit in real estate investing these days. That is far from the truth! Thanks to recent developments in information systems and smartphone technology, it’s now easier than ever to get started in real estate investing from your phone.

A real estate investment app can guide you along your financial journey. If you don’t know what to do when you’re starting, then choosing the right apps can give you the support you need. Furthermore, real estate apps allow you to track your progress and earnings. With real estate investment apps, even the beginner can make tangible progress toward their financial goals without much trouble. Investing in real estate has never been more convenient!

At HappyNest, we are proud to offer a premier app for investing in commercial real estate. With our service, you don’t even need much experience or money to get started. When you invest, the app tracks your progress. Not sure how to proceed and get started on developing your commercial real estate investment portfolio? Just looking for a little more information on what Happynest does? No problem! Don’t hesitate to reach out and get in touch with a member of our team today. We can’t wait to work with you!
 

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