Are you looking to invest in real estate in the new year?

There are over a million real estate investors in the United States alone. Many experts predict that the housing market will remain strong in 2022 due to low unemployment and plentiful jobs. People will move to take better positions forwards if they have an opportunity.

High demand means high prices, right? In this article, we will discuss some of the investing trends for the upcoming year. These should help guide your strategy and make for a more profitable year.

Keep reading to learn what real estate investing trends to watch out for in the upcoming year.

1. Inventory Will Be Tight

As you move into the new year, inventory will be tight in the real estate market. This is one of the top trends we are seeing in 2022. Low inventory levels mean buyers are competing for a smaller pool of homes, driving up prices.

This trend is especially pronounced in desirable markets like Seattle, San Francisco, and New York City. While this may frustrate buyers, it’s good news for sellers and investors.

If you are thinking of selling your home, now is a great time to do so.

2. The Suburbs Will Increase

There’s no question the suburbs are on the rise. And, with that comes a rise in suburban real estate investing.

From rental homes to complexes, suburban real estate is in high demand. Here are a few of the top suburban real estate investing trends of 2022:

The rise of the commuter belt. With more and more people working from home, there’s a need for suburban homes close to major cities. These commuter belts are becoming popular, and investors are taking note.

The growth of suburban amenities. From grocery stores to restaurants, suburban areas are becoming more and more self-sufficient. This is attracting a wide range of investors, from first-time buyers to experienced developers.

3. Real Estate Industry Embraces Technology 

A recent study found that thousands of real estate transactions were done without the use of a traditional real estate agent. This number is only expected to grow in the coming years as technology continues to change the game.

There are several new startups that are making it easier for people to buy, sell, and rent properties without the help of a real estate agent. These companies are using technology to streamline the process and make it more efficient.

Also, there are several new real estate investing platforms that are making it easier for investors to find and invest in properties. These platforms are using technology to connect investors with properties that fit their investment criteria.

4. Low-Interest Rates Will Stay the Same

Investors are still bullish on real estate but are more cautious than they were a year ago. The top concerns among investors are the potential for interest rate increases in some markets. Despite these concerns, most investors believe that now is a good time to invest in real estate.

The combination of low-interest rates and strong economic growth is expected to continue to drive demand for real estate. The expansion of the economy and job market is also expected to support the real estate market.

Yet, there is a risk that interest rates could rise sooner than expec3

3ted, which could put pressure on the market. With interest rates remaining low, it’s no wonder many people are turning to real estate investing to generate income.

If you’re thinking about investing and want to buy real estate, now is the time! However, I encourage you to do your research, read more here, and consult with a professional. 

5. Redevelopment in Urban Areas Will Continue

One of the most popular redevelopment trends is the conversion of older buildings into mixed-use properties. These properties mix residential, commercial, and retail space, and are often in prime city locations.

Another trend that will continue is the development of micro-units. These are small, efficient apartments that are becoming popular with young professionals and empty-nesters. Micro-units offer a more affordable option for city living, and can often be in redevelopment projects.

Overall, as more people move into cities, the demand for development in urban areas will continue to be a popular trend in the coming years. This trend is being driven by several factors, including the need for more housing, the desire for more walkable neighborhoods, and the appeal of living close to work and recreation.

6. Vacation Rental Properties Will Remain Strong

Every person I talk to is considering purchasing a vacation rental property. The appeal is obvious: you can generate income while also having a place to stay when you want to travel. You should expect this trend to continue in 2022, as vacation rental properties will remain strong.

The pandemic has shown us that people are still interested in traveling, even if it looks different than it did before.

Another, as the economy continues to recover, people will have more disposable income and will look for ways to invest in it. And, vacation rental properties offer a unique opportunity to create a passive income stream.

7. The Healthcare Real Estate Market Will Expand

The expansion of the healthcare real estate market will provide opportunities for investors to buy and develop properties that are for a variety of healthcare-related purposes. These include hospitals, clinics, senior care facilities, and research laboratories.

As the healthcare industry continues to grow, so will the demand for healthcare real estate. Making it a sound investment for those looking to enter the market.

Look Out for These Investing Trends

In conclusion, the trend toward real estate investment is picking up speed and will continue gaining popularity in the coming years. With the potential for high returns and the low cost of entry, it’s no wonder that more and more people are interested in this form of investing.

If you’re thinking of investing in real estate, keep an eye out for these investing trends in the coming years and you’ll be well on your way to successful real estate investing.

If you want to learn more about how to invest and more investing tips, and other topics, check out the rest of our blog!

Jane