“I skate to where the puck is going to be, not where it has been.”
Our work and lives have transformed in 2020. What might we expect for real estate in 2021 based on what we’ve learned thus far?
Real Estate Investing follows population growth and migratory patterns. Historically these items have depended on where jobs and industry are most prevalent.
More jobs mean more people. More people mean more demand on housing. More demand on housing means price appreciation. The same works in reverse -the once great city of Detroit comes to mind.
One question to ask is how have our work lives changed over the last year and which of these changes are likely here to stay?
What about working from home?
For better or worse, working remotely is now an accepted way for companies to operate and they will make adjustments. Companies will have to alter their work culture as well as their footprint for office space.
Just as online shopping changed the face of Retail Real Estate, working from home will change the face of both Commercial Real Estate as well as Residential Real Estate.
Those who can, are making the move from the more densely populated cities to more suburban areas. Similarly, people are moving from apartment buildings to single-family homes.
The demand for Single Family Home rentals is at an all-time high with no immediate end in sight. As the millennial generation ages and has children their demand for space will also continue.
But if you can work from home, why be in New York or San Francisco? How about a cabin by the lake in the woods? How about a cabin by the lake in the woods in the Andes of Chile?
While there is never any crystal ball, asking better questions invariably leads to better answers.
If you’d like to learn more, I’m happy to assist!
Our mission is to help passive investors become financially free by providing high-quality
alternative investments — if we can help you in that way, it would be an honor to do so. Feel free to schedule some time for us to chat.