Earlier this year, the National Association of Home Builders (NAHB) surveyed nearly 4,000 home buyers, those who have either recently purchased a home or plan to purchase a home within the next 3 years. Realtor.com also reviewed home transactions between January 2018 and September 2018 and compared them to the 2017 home sales to come up with some statistics about who will drive home sales in 2019.
These statistics become meaningful when you apply them to your own real estate investment plan as much as possible. As you approach your real estate fix-n-flip project, it is important to apply the money in your budget toward the areas that will give you the most buyer draw for the dollar. This is not easy, and the target is constantly moving as new products come onto the market, new buyer demographics emerge, incomes fluctuate, and young buyers learn from their parents, study what their parents have done and listen to what they would have done differently.
Millennial Generation Buyers
When you first start looking for the right property to remodel, you may want to consider looking in areas where the largest group of people are looking. The realtor.com survey of emerging home buyers in 2019 points out that affordable homes, jobs, and the availability of entry level homes are “magnets for young buyer.” A large segment of the millennial generation will be turning 30 years old in 2020, so they are starting families, and, as rents rise, moving out of apartments and buying houses. According to the NAHB survey, 64% of buyers preferred to buy a home in the suburbs. 24% of buyers were looking for a house in a rural area. 11% of buyers were looking for a house in or near the center of a city.
Storage and Energy Efficiency
The information in the NAHB buyer survey gives you some general guidelines on what home buyers are looking for in their homes. After location, buyers prefer
- laundry rooms
- energy saving appliances
- energy saving insulation
- energy saving windows
- home storage
- garage storage
- walk-in pantries
- hardwood flooring
- exterior lightening
A few rising trends were noted in the NAHB buyer survey that may pique your interest and inspire some research, including: houses are getting smaller, engineered quartz countertops, vinyl and resilient flooring, wireless controls, open interior and exterior spaces in kitchens, and higher-end fixtures in bathrooms, such as wall-mounted sinks, faucets, and toilets, are becoming more popular.
REI Capital Resources built its reputation on finding private funding for investors for quick turn purchases and difficult situations. This is still true today.
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