Yes there may be a housing down turn, but don't forget about the big picture. The overriding and encompassing story of our time has to do with a growing population that far outstrips our natural resources and energy reserves. Although the current economy may not be, the world population is growing. Growth is still happening in our cities, our towns, and in our communities. The big question for many people is how issues like population growth/economic slowdown, the environment, and dwindling resources effect decisions made today about buying and selling real estate. How do these trends affect my decision making in the current real estate market? These important questions bring about some very interesting answers, some of which may actually help reduce the impact on our planet and create wealth over the next couple of decades.
There are three important elements of real estate that one must keep in mind when making long term investments in new projects, upgrading existing projects, or deciding whether to buy, sell, or hold on to a property.
The Emerging Green Economy: There will be a new direction in commercial real estate development and housing development in our country and the world over the next decade. It is important to embrace it now; otherwise you will be one step behind the curve. Residential and commercial properties consume about 38% of all energy in the U.S., according to The U.S. Department of Energy. Greening your current home or using a green standard when constructing new buildings, which means using energy efficient and sustainable building practices, is the best bet for your investment. There will be more demand for energy efficient homes and buildings over the next 20 years. You will get higher prices for those properties and you will rack up savings on energy bills over the life of the property. Now is the time. If it does not make sense to sell your home in the current market, then work to make it more efficient so when the time does come, you will be ahead of the curve.
The Boomer Generation: America's largest, wealthiest, and most influential generation will cause the biggest growth in the housing sector in the next two decades. If you want to know how to make your investments in residential real estate pay off, find out what the Boomer's want, and then give it to them. According to the book, Boomer Consumer co-author Matt Thornhill predicts the following within the next two decades: 1) Boomers will renovate their existing homes to make them more comfortable and safer as they age. 2) Boomers will turn neighborhoods that have easy access to shopping and other services into retirement areas with co-housing and other kinds of intergenerational living. 3) Pods - one-bedroom structures wired and plumbed to the main house - will be popular answers for families with older members. 4) Boomers will prefer city to suburban living.
Unprecedented Urban Growth: If you read the latest reports from United Nations Population Fund - UNFPAyou will clearly see some major trends taking place. People are moving into the cities all over the world, including almost every part of the United States. The majority of the population of the U.S. will be living in metropolitan areas by 2020, according to the U.S. Census Bureau. People want better access to jobs, public transportation, cultural amenities, and goods. It is important to keep this trend in mind when making real estate purchases over the next few years.
These are just three of the encompassing stories of our current times. If you take the time to understand these trends better, you will make wiser decisions regarding your real estate investments.
Visit www.insideoutrealestate.com for more information and feel free to contact me with any questions.
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