Real Estate trends from 2025.
The real estate market constantly fluctuates, and the next 10 years will bring interesting changes. John Burns Real Estate Consulting prepared a report called “Demographic Strategies for Real Estate” and it predicts how the market could look like by 2025.
The considerations in the report are:
Tomorrow’s home market is diverse. The report states that immigration will account for half the population growth by 2023. This not only alters the cultural fabric of the US and its cities but also the economy, as foreign-born families will be more affluent than past generations.
Changes in household formation. Household formation drives homeownership, but millennials are delaying having children, and the tendency will be that they will raise their families in professionally managed, detached, rental homes.
This is because renting allows access to better properties for a fraction of the cost, but also offers the freedom to constantly move following better professional or personal opportunities.
The labor shortage in the construction industry is imminent. The labor pool is shrinking as workers have found more lucrative opportunities in other sectors.
Suburban growth will return. From 2010 to 2015 urban households grew by 13 percentage points from the decade prior, but analysts expect that the trend will reverse over the next decade.
But also, many US citizens are choosing to buy properties abroad as vacation rentals will be lucrative real estate investments soon.
Los Cabos is a popular destination for retiring US seniors, but also for investors looking to take advantage of tourism by managing rental properties that provide considerable earnings.
But also, more and more companies are encouraging remote work, and this allows people to live abroad while getting paid in dollars, which allows them to improve their quality of life considerably.
For investors, rental properties are a wonderful business. Thanks to a law that allows foreigners to own properties near coastlines using fideicomisos, it is possible to get condos or other types of residences to rent short-term or long-term.
Cabo is a wonderful destination to invest in because its weather is warm all year long and visitors from all over the world won’t stop.
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