6 Trends Housing Market Investors Should Look For In 2022

Two years after the COVID pandemic hit the United States, more signs of hope emerged, particularly within the commercial real estate sector.

Multifamily And Single-Family Rentals Are Expected To Remain Robust.

According to Zillow, home prices have risen 19.5% in 2021 and are expected to rise another 11% in 2022, despite higher mortgage rates. This overheated market is driving young families out of the market since they prefer a single-family residence.

Increasing Inflation And Interest Rates

As a result of rising inflation, the real estate industry’s materials, energy, and utility costs have increased significantly. At the same time, rising rents have shown landlords an immediate return on their investment.

Invest In The Sunbelt

Following are a list of markets offering excellent investment opportunities. - Tampa-St. Petersburg, Florida. - Nashville, Tennessee. - Austin, Texas. - Dallas-Fort Worth, Texas.

More Quants Will Be Involved In The Real Estate Industry

We expect more quantitative firms to invest in commercial real estate in 2021 to deploy AI and machine learning. As a result of improving the inefficiency of CRE data, firms are searching for opportunities where there is historical growth, but prices are dislocated from value.

The Office Layout Will Change, But It Will Not Close

The physical office is not dead, despite headlines to the contrary – it is looking to upgrade. While the office market is experiencing its highest vacancy rate in recent decades, investors can expect stabilization in office occupancies and rent growth this year.

Secondary Markets Will Outgrow Major Cities

As a result of population, jobs, migration, and attractive market dynamics, we expect cities such as Phoenix, Atlanta, and Charlotte to have the most substantial rise in growth this year.

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