2020 was an unpredictable year, especially for real estate. The pandemic has had different impacts on residential and commercial markets. In 2021 the impacts seem to continue, but this creates unique opportunities for investors.
Predictions For Residential Real Estate Markets In 2021
In 2020 residential real estate took a dive in big areas like New York City and San Francisco, and they saw a drop in property values. However, there was sudden demand for suburb homes which saw values and rents increase. This is likely to continue into 2021. As long as urban markets remain less competitive, we could expect to see continued opportunities for buyers. Interest rates are likely to remain low and suburban home values will skyrocket.
Opportunities For Investors
In 2021 it is widely predicted that the residential market will continue to gain strength as supply and demand continues to favor owners of real estate. The low supply of available homes on the market will cause buyers to act quickly.
It may seem counterintuitive to purchase a vacant office building, but this could be an effective strategy for risk-tolerant investors. Many companies are currently remote and whether or not they go back to the office does not mean the space loses it’s value. Another possibility is that office spaces will be repurposed into residential buildings after the pandemic.
If you are looking to invest in real estate, now is a good time to start. There are plenty of opportunities arising, especially in 2021. PPM can help you whether you have no properties or many properties. Our acquisition teams will assist you finding investments that meet your strategy and risk level, while performing complete due diligence.
A year from now, you’ll wish you started today.
– Matthew Schlagle, Director of Maintenance & Construction