How the New Generation is Changing Real Estate Investing

Millennials and Gen Z are actively changing real estate investing. The new generations have different priorities than the older generations. For instance, they rely greatly on the internet for all aspects of life, from displaying their personal lives through photos and videos to finding their place of work remotely in their own homes. Many variables such as the preference of technology, prioritizing sustainability, affordability being greatly considered, and lifestyle preferences, all play a vital role in the decisions they make in real estate market.

Preference for Technology

One of the most notable ways in which the new generation is revolutionizing real estate investing is through the adoption of technology. Traditional methods of property search, investment analysis, and management are being replaced by digital platforms and data-driven solutions. Online marketplaces, such as Zillow and Redfin, offer transparent access to property listings and historical data, empowering investors to make informed decisions.

Moreover, advancements in artificial intelligence and machine learning are streamlining processes like property valuation and risk assessment. Algorithms can analyze vast amounts of data to identify investment opportunities and predict market trends with greater accuracy than ever before. This data-driven approach not only reduces investment risks but also opens up new possibilities for maximizing returns.

Social Media

Social media has emerged as a powerful force shaping the realm of real estate investing, particularly with the new generation of investors. Platforms like Instagram, Facebook, and LinkedIn are not only used for networking and building professional relationships but also for marketing properties and showcasing investment opportunities. Real estate agents and investors leverage social media to engage with potential buyers and renters, share property listings, and obtain valuable insights into market trends.

Prioritizing Sustainability

Millennials and Gen Z tend to prioritize sustainability when making investment decisions. Properties that offer energy-efficient designs, such as solar panels, may see more market demand from the new generation. According to a 2024 Zillow Data Study, homes with solar panels now sell for 6.8% more than their comparable non-solar counterparts. Not only is this great news for the environment, but it is also great for sellers because it raises the home’s value while simultaneously reducing monthly costs.

Rise of Alternative Investments

The new generation of investors is also diversifying their portfolios by exploring alternative real estate investments beyond traditional residential and commercial properties. From co-living spaces and co-working hubs to storage facilities and data centers, there is a growing appetite for non-traditional real estate assets that offer unique revenue streams and higher yields.

Additionally, the advent of real estate crowdfunding platforms has democratized access to investment opportunities, allowing individuals to pool their resources and invest in projects that were once reserved for institutional investors. This democratization of real estate investing not only provides greater access to capital but also fosters community engagement and collaboration among investors.

 Impact of the Sharing Economy

The rise of the sharing economy, exemplified by platforms like Airbnb and WeWork, is also reshaping the real estate landscape. Short-term rentals and flexible office spaces are becoming increasingly popular, driven by changing consumer preferences and the desire for experiential living and working environments.

With all things considered, Millennials and Gen Z are completely altering real estate investing. Through innovative technology, a focus on sustainability, a rising demand to invest in alternative properties, and a desire for a quality lifestyle, the real estate market is going to continue to evolve alongside the new generations' wants and needs. Investors who understand and adapt to these evolving circumstances are well-positioned to succeed in the ever changing real estate market.

RCN Capital

Do you have a real estate project you would like to obtain financing for? 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 for financing for your next real estate project, RCN Capital has competitive loan options available.