5 Intriguing Facts about Real Estate Development
What comes to your mind when you think about real estate development? Is it highway-sized buildings, prime locations, or long waiting lists? It can be challenging, too: planning landfills, zoning and permitting, building from scratch, and so much more.
But the real estate developers and agents who do this job will tell you it’s more than just hard work. The job is rewarding—not only because they get to help their clients buy or build a home, but because of the sense of accomplishment that comes with it.
Even so, there are still things about this field we don’t know. Understanding the different facts and trends in real estate development is useful when contemplating buying or selling property. Read on and discover five intriguing facts about real estate development.
1. Real Estate Is Viewed As a Superior Investment By 42% of Buyers Compared To Stocks
Real estate development is rising in popularity, with 42% of prospective buyers citing real estate development as a better investment choice than stocks. This fact is according to a survey by the National Association of Realtors (NAR).
The main reason cited by those who chose real estate development over stocks was that real estate is viewed as more stable, one that improves with age rather than loses its value. The fact that it is less volatile also boosted their selection. In addition, being a lower-risk investment makes it a better choice.
2. Clients Will Spend More on Smart Home Devices
Based on a 2021 survey on smart home consumer trends, 78% of the respondents (home buyers) acknowledged they are willing to pay more for homes installed with smart devices.
The use of smart home technology is increasing and has continued to gain the attention of home buyers. Today, smart devices like smart lighting and video doorbells are very popular among home buyers due to the convenience of saving more energy, less maintenance, and better security. The survey also found that women are twice as likely to desire home security systems than men.
3. 67% of Buyers Prefer a Detached Home
Most buyers will not prefer a home with neighbors. In fact, according to a report done by the National Association of Home Builders, 67% of clients are fascinated with a single-family, detached home. The report further indicates that 15% of the buyers would prefer a townhouse, while only 8% of buyers would preferably buy a multi-family condo.
There are a few good reasons why more people prefer detached houses. For one, it enhances privacy. Secondly, it is bigger and more spacious than other homes. Also, it is more practical as you can convert the garage into a game room, not forgetting the curb appeal of a detached house.
4. The Housing Market in the United States is Worth $33.6 Trillion
Isn’t it intriguing that the current housing market of the United States is larger than the two largest global economies’ GDP? As such, the total value of each home in the United States is estimated to be around $33.6 trillion.
The state of California alone contributes 21.2% of this value since it incorporates $7.1 trillion worth of housing. Los Angeles, on the other hand, has added over a trillion dollars of value to the total housing market since 2010.
5. 44% of Millennials Would Buy a House Based on Photos on Listings
When it comes to millennials, they are more comfortable ordering items online compared to older generations. Since they are so dependent on the digital world, it is becoming normal for them to look up to influencers and celebrities when buying items like clothes, makeup, and even houses.
It is known that millennials are more likely to use a digital method to search for houses based on the list of features and info about them. This digital method is more effective for millennials because of the vast amount of information they have access to. Using the online method to apply for mortgages is also becoming something millennials would do.
Our Development Team Is Committed To Your Next Project
Certainly, real estate development is an interesting venture to be in, not only because of the work it entails but also because of its benefits. Knowing these five facts can help you better understand what’s in store when you put your money in a home.
Are you in Nashville and are looking to buy or build a home? If yes, contact Southeast Venture today. Our development team in commercial real estate Nashville is committed to your next project, be it buying or selling a home. No two projects are the same, so we are here to make it easy for you. Go ahead and give us a call or fill in our contact form.