What’s ahead for the US real estate market in 2024?
There are a variety of influencing factors guiding the economy and US property market. What are they? What outcomes and opportunities can we expect those to lead to over the next year?
Factors Affecting The Markets In 2024
Among the many factors at play in the economy are:
- Higher interest rates
- High inflation and living costs
- The 2024 presidential election
- AI and unemployment
Outcomes & Opportunities
What does the above mean for the real estate market? What opportunities is it creating?
Increasing Financial Distress
We’ve already recently seen record numbers of auto loan defaults and repossessions. Defaults among credit card and business debt have also been rising.
So far savings and credit have helped millions of consumers stay afloat among high living costs. Those lifelines are running out. This will be compounded by rapidly growing unemployment due to AI. Which is likely to result in more property owners being more motivated to sell, and accepting lower offers, on better terms for investor buyers.
This not only includes single family homes, but entire condominiums and new home projects.
Overcoming Uncertainty Through Diversification
Expect more and more uncertainty to be sown throughout the year. With plenty of volatility in the stock market and other asset classes.
Few may have confidence in knowing what direction things are going in. Yet, that can be overcome with real diversification. Which ought to drive more investment into real estate. Both in terms of the number of investors and the portion of their portfolio they allocate to it.
The Need To Invest In Real Estate
Even beyond a desire for better diversification, those at all ends of the financial spectrum will find that they need to invest in real estate this year.
That is true of the wealthy who are enjoying more income and higher net worths in 2024, and who need to find places to park and preserve that.
As well as for those workers finding their careers are over due to displacement by AI, automation, and other technology. Millions of people need new sources of income.
There are many factors at work in the economy and real estate sector this coming year.
They are likely to lead to more financial stress for millions of individuals and businesses. This will yield more attractive acquisition opportunities for investors.
At the same time the US real estate market will be strengthened by increased capital investment from those seeking security and income.