The real estate market is constantly evolving, which is why its ever important to stay ahead of the approaching changes to help better strategize and plan investments. The low inventory environment combined with elevated interest rates have shaped the market in recent years, but with these factors stabilizing, both investors and lenders have a chance to make the most of these opportunities.
There are many factors which are set to affect the real estate market in the coming year, but we want to highlight some of the most important ones which are sure to make an impact on investments. Continue reading as we go through the top 5 real estate trends to watch in 2025.
Technology is becoming increasingly common for real estate investors in the modern age, with everything from how they research properties to how they furnish them. Besides using more popular MLS sites such as Zillow or Redfin, investors can make use of data aggregation sites like ATTOM Data or reidealmaster.com to obtain accurate information on markets, neighborhoods, or specific properties. This data helps them make better decisions leading to more profitable deals. In terms of what goes in a property, smart technology helps owners manage their homes and can even save them money. Smart locks and cameras work together to provide an elevated level of security, and smart thermostats learn the patterns of residents, reducing heating and cooling costs.
A large amount of the population has chosen to migrate to mid-sized cities in the US, leading to rapid growth and also investment opportunities in these areas. Some prime examples include Raleigh, Charleston, Sarasota, and Clearwater. Even slightly larger metros like Austin, Charlotte, and San Antonio have seen healthy growth. Mixed-use developments are proving to be very popular in these markets, providing both commercial and residential space for use. Rental properties are also very popular as these demographics often choose to rent over owning property. Researching different metros and the types of properties that are popular within them can help you identify key opportunities for investment.
There is a growing focus on eco-friendly development in real estate, and this is expected to continue in the coming years. Modern buyers have shown increased demand for energy-efficient homes and green building certifications, especially when you consider the cost savings that come with them. There are also certain markets and jurisdictions that demand new properties are built with a certain level of ecoefficiency. Learning about and implementing these regulations can be very useful to an investor. They can even become key selling points when it comes time to market a listing for a property.
The rental market has seen increased growth this year, a trend which is also expected to gain traction in 2025. With a growing number of urban professionals seeking housing, build-to-rent investments are making more and more sense. Short-term rentals have also seen a resurgence as tourism has recovered in most major cities, making Airbnb rentals a viable strategy once again. For financing providers, tailored solutions for rental developers can become a great opportunity to take advantage of this growing trend.
Changing demographics are sure to have a big impact on the real estate market in the coming year. As Millennials and Gen Z enter the market, their housing preferences and the loan structures they seek out will be different from other groups. On the other end, an aging population in the US could lead to more demand for senior living facilities and age-friendly homes. Doing due diligence and understanding the demographic makeup of whichever market you are operating in will help you better target these groups with your marketing and investment efforts.
The easiest way to save on your next investment is to obtain financing from a real estate lender that can get you the best leverages and rates. RCN Capital lends to real estate professionals, commercial contractors, developers & small business owners across the nation. We provide short-term fix & flip financing, long-term rental financing, and new construction financing for real estate investors. If you are looking to finance a real estate project, RCN Capital has competitive loan options available.