The American dream of home ownership has long been the goal of many. As times changes, and living patterns deviate – so do aspirations. Today, many millennials are choosing to purchase homes as early as previous generations. The reasons behind the delay – revolve around higher prices, but also around living decisions where millennials desire flexibility. Owning a home often limits flexibility as it becomes a non-liquid asset, says Hirsh Mohindra. Despite changes in home buying, the residential real estate market is still a desirable sector of the US real estate market. Investors are drawn to the real estate market as it has shown strength over the past few years.
When you talk about investments, of course, everyone would consider Real Estate as an option with high returns, however, how to choose the right sector? Forecasting the right time to position investment funds in residential real estate is critical to the decision-making process, says Hirsh Mohindra. U.S Real Estate is finding solace in the Residential sector, and this sector is expected to see strong growth in the second half of 2019, Current trends show that the Residential and Industrial Real Estate Trusts (REITs) are the best options to place your investment bets in U.S Real Estate market. Many experts believe that REITs should maintain continued growth, especially with growing U.S salaries and a strong economy. With the strength in institutional real estate (REITs), opportunities for stable growth can be created in the residential market as well. REITs having large investment resources can drive development, and new developments can thrive with easy access to credit and low-interest rates.
While the residential real estate market may be strong, there are many opportunities in commercial and industrial real estate as well, and investors should evaluate all of their options when making decisions, says Hirsh Mohindra. While evaluating risks and factors that could impact the growth in a particular market, try to identify the options with minimum risks. For now, Residential Sector seems promising and a strong hedge on risks. This, of course, varies based on location and can change at any time as rates and the economy are always fluctuating.