Markets tend to change in each year, and real estate markets are not an exception. While most of this data is applicable only to the US real estate market, with globalization making its way nowadays, investors and agents alike in Thailand can still take note and expect some of these trends to impact the Kingdom as well.
Alright, without further adieu, let’s look at the trends that are expected in the US real estate market for 2018.
First, let’s define these two age groups. Millennials are those born before sometime in the 80s until the middle of the 90s, while Gen-Z’s are the younger generation who are around 18 to 21 years old at this time.
Millennials, being older than the Gen-Z, are expected to make decisions in real estate investments that are practical and with an eye for stability. This generation is also known for being tech-savvy, and their preference for living the urban life instead of the rural or sub-urban. Thus, agents should better whip up their portfolio of urban properties when dealing with Millennials next year.
On the other hand, the Gen-Z babies are the fresh graduates. Similar to Millennials, Gen-Z’s are tech savvy and urban creatures as well. However, they are young and are more likely to be aggressive with their investment choices than their preceding generation. Although capable of seeking out stability and structure, Gen-Z will be debt-ridden by the time they start their foray into the real estate market.
These two generations will be the primary driving forces behind forecasted trends for 2018, and will make up a huge chunk of the real estate consumer pie. However, that doesn’t mean older generations will not be active next as well.
Baby boomers are set to cause waves in the market as well, but their decisions will be drastically different from the two more recent generations. As these people of the older generation retire, they are more likely to give up their sizable real estate holdings and will seek out smaller and affordable housing that they can sustain with their retirement savings and income.
This can present a challenge for real estate agents, both in the US and in Thailand. Remember, the Kingdom is a very attractive option for retirees, and agents could find themselves scrambling to find options for their retiree clients who want to spend their more advanced years in the Kingdom. 2018 is even just the tip of the iceberg, as 75.5 million Americans are expected to retire anytime between next year and 2030.
House building will also continue to be revolutionized, as more and more contractors are expected to embrace the use of advanced technologies. This will bring about efficient workflows, improved turnaround time for construction, and process automation. This can also bring about a surplus in supply, which is also one of the trends expected come 2018.
Indeed, next year promises a dynamic time in the real estate environment. Keep yourself and your business updated on these trends, and you certainly won’t left behind.
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