The Real Drivers of the 2013 Real Estate Market
What’s driving the housing market this year, and where does it suggest the best opportunities for real estate investing are?
While some reports point to real estate as the only positive thing happening in the U.S. economy, there is a lot more going on than many give credit for. Real estate may be the biggest driver of the economy and jobs right now, but we need a broader spectrum of growth in different industries to keep the current rebound sustainable and to launch us into a full-on boom period.
Fortunately, a new first quarter 2013 market trends report published by the CCIM Institute points to 7 factors and areas that are enjoying great growth and promise great opportunities for real estate investors ahead.
The energy sector is booming from new tech used for excavation to emerging green technologies and development in the mid-west which is creating new masses of new jobs.
The world might have turned its back on New York when the collapse began, but it has seen a strong recovery since. As once formidable banking centers around the globe now face a crisis of their own, more institutions are betting on expansion in the U.S. again that would benefit not only NYC, but Connecticut real estate and international banking centers like Miami as well.
The demise of American manufacturing was supposed to relegate us to third world status, but the U.S. auto industry, parts, and food manufacturing is coming back.
Asia may have gotten the jump on us in the past and there may be cheap tech industry workers operating offshore, but America continues to enjoy a flock of the world’s best tech oriented minds coming to roost. This is leading a rebound in office leasing and boosting downtown residential property demand in hot urban areas like San Diego as well as real estate in the path of Google’s super high speed fiber network.
Politics have become bigger business than ever before and boosting business and real estate growth around the nation’s capital in the north east.
6. The South
From Miami, to Atlanta, to Phoenix and Las Vegas, the south is still seeing a good number of foreclosures and with property prices depressed, offer great bargains and outlook for capital gains as the other factors above kick in.
The state of California has the 8th largest economy on the planet and with improving employment in education health and hospitality it is only growing. This will only continue to boost the value and demand for San Diego real estate.