The real estate industry seems to simply plod along, utilizing an established model to ride out the waves and slumps of boom-and-bust cycles. But the reality is that the housing market is poised for dynamic change over the next decade – and there is plenty of cause for optimism.
Positive Price Projections
The housing market’s outlook for the next 10 years is overwhelmingly positive. Many economists are predicting a healthy growth in national median home prices over the short to medium term. Of course, price growth forecasts vary according to factors such as housing demand, income growth and population increases in different cities, yet the overall feeling among economists is one of optimism. In fact, many are predicting 3.5%-10% growth in property prices across the United States over the next 5 to 10 years. This bodes well for those looking to enter the market as either a home owner or investor.
Prospective tenants can already secure properties by bidding for them via an online auction, a system that is slated for further growth over the next decade. Under this model, landlords set a property reserve while renters, all of which are pre-screened before the bidding stage, bid accordingly. This is good news for tenants and landlords alike, as tenants have more control over which properties they move into and how much they spend, while landlords with high-demand rental units are poised to lease at above-market rates.
Renters will also have new hope for finding higher quality housing thanks to other technological advancements. Software is being developed to deduct rent from a tenant’s paycheck, increasing the chances that renters who struggle to find housing get approved for a lease. Landlords, meanwhile, are assured of being paid on time.
Artificial Intelligence Leaves its Mark
Artificial intelligence has swept across numerous sectors and has the real estate industry in its sights. According to an Oxford University study, there is a 97%-99% chance that AI will make real estate agents obsolete in the next decade. While this is bad news for real estate agents, it offers cost-cutting opportunities for real estate investors.
There are already a host of online property agents that use machine-learning algorithms to provide real estate services at a tenth of the current cost. As technology continues to advance at a rapid pace, these services will become more comprehensive over the next decade, further reducing fees associated with property investment.
With such optimistic views, moving forward in real estate investing ought to be a no-brainer for those seeking financial security for the long-haul. Whether you’re flipping, wholesaling, using my Unlimited Funding Program, or simply “land-lording” one unit at a time, rest assured the market in the next decade ought to suit you very well.