The real estate investing landscape is more exciting and accessible than ever before. With dynamic changes and innovative strategies shaping the market, there has never been a better time to become a real estate investor.
The Importance of Local Investors
As highlighted in a mid-year 2024 report by New Western, local investors are playing a pivotal role, contributing to affordable housing, and balancing inventory through flipping and building activities. This trend underscores the importance of real estate agents who can navigate investment opportunities and cater to investor needs. Their intimate knowledge of local markets allows them to identify opportunities that others might miss.
According to New Western, “Local investors are small business owners making an impact on housing inventory and their outlook on REI is positive. 91% of New Western investors expect their businesses to grow despite market conditions and 80% plan to flip 1-5 homes this year.”
The Fresh Faces of Gen Z and Female Investors
The real estate investing community is becoming increasingly diverse, with Gen Z and female investors making significant strides. These new investors bring fresh perspectives, leveraging technology and social media to uncover opportunities and make informed decisions. This shift underscores that real estate investing is not just for seasoned veterans. It’s also a field ripe for new ideas and innovative approaches.
Here’s New Western’s take, “Gen Z investors are highly ambitious with 79% having started their small businesses in the last few years. The amount of REI content available on YouTube and social media has allowed Gen Z to learn faster and absorb complex REI strategies using modern technology that they prefer. Although they began in a high-rate environment, these Gen Zers expect major business growth of as much as 50% in 2024. They also plan to buy more properties than their Boomer, Millennial, and Gen X investor counterparts.”
Historic Surge of New Investors Entering the Market
Small businesses and new buyers are entering the market in greater numbers than ever before. It’s not only institutional buyers anymore. New investors are looking at the passive income and positive returns that they can gain by becoming real estate investors.
In New Western’s words, “Following the post-pandemic Great Resignation from the corporate world, a new group of entrepreneurs launched REI businesses to chase the American Dream. During 2023, 68 thousand new investors looking for properties to rehab were added to the New Western marketplace. These aren’t the institutional investors reportedly snatching up 100-plus properties in a single community. These are small businesses, many just getting started. Contrary to headlines that suggest huge national corporations are taking affordable homes away from the average homebuyer, the institutional buyer market share has decreased 52% from 2021 to 2023.”
Maximizing Opportunities for All Buyers
At Bold Street, we advocate for every buyer, including family buyers, to adopt an investment mindset. By leveraging market trends and insights from industry experts, agents can provide clients with strategies that enhance long-term value and financial security. Whether it’s a first-time homebuyer or a seasoned investor, understanding the potential for property appreciation and rental income can lead to more informed and lucrative purchasing decisions.
2024 is the Perfect Time to Become a Real Estate Investor
The evolving real estate market demands agents who are not just transaction facilitators but also investment advisors. By staying informed and adapting to trends, agents can unlock new opportunities and deliver unparalleled value to their clients. Embracing this dual role will not only enhance their professional reputation but also contribute to the growth and stability of the real estate market.