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Trends that Influence Real Estate Investing

The real estate industry is one of the sectors experiencing constant growth and transition. With the advancement in technology, globalization, and increasing demand for housing, the industry is taking another dimension.

Buying a new home in the United States is now easy given the increasing number of realtors and real estate agents who are willing to hold your hand in the process. The rising number of home purchases in Princeton, NJ, and other major cities across the nation is a clear indication of the progress made by the real estate industry.

This article seeks to cover some of the four key trends in the real estate industry that will influence investors this year,

Top four real estate trends that will influence investors in 2019

1. Crowdfunding

Crowdfunding is where individuals pool funds towards funding a project in a recognized and registered Crowdfunding company. Crowdfunding enables real estate investors to get low-interest loans to finance their projects. Most crowdfunding platforms provide easy to service loans and give their members guarantee on the loans they take from the company.

The level of compensation in crowdfunding platforms attracts many investors into pooling more resources in such platforms availing more investment funds for companies in the real estate industry.

2. Change in market

The real estate market has undergone a transition. Since the housing market boom experienced in the period 2003-2005, there has been an increasing demand for commercial and residential houses, increasing the home prices in the market. Among homeowners, the rate of foreclosure increased tremendously after the boom.

Today, the change in the real estate market can be evident on the increasing demand for mortgage and the direct impact it has on real estate investment and home valuations.

3. Technological advancement

The change in technology affects many industries, and the real estate industry is not left behind. The investment trend in the real estate correlates with the advancement in technology. Consumer behavior has changed as improved machines, devices, and appliances find their way into the market.

Improved communication with the invention of smartphones, digital communication, and print media has made it easier for consumers to share information across different platforms. The presence of asymmetric information in the market is reduces as the market tends to reveal imperfection. Investors can quickly get housing information from online and determine where they should invest their money.

4. Legislative landscape

Globally, the changing legislation affects the economy and the real estate environment. For instance, Brexit in the UK has to lead to many real estate projects being postponed across the globe. In the US, the Tax Cuts and Jobs Act (TCJA) has made the real estate market trend more unpredictable.

Investors tend to delay making investments when it is impossible to forecast the future of the real estate market.


The real estate industry faces changes of some may be beyond the scope of this article. These changes and trends directly influence investors. However, the potential trends that will change the industry this year are discussed here. If you intend to invest in the real estate market, then you should beware of these trends to know where to put your money.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

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