The city vs suburbs debate has been nonstop, ever since the growth of US suburbs during the 1950s. Both real estate investors and homeowners are often unsure as to where to take their custom. The Real Estate Trends Report for 2019, from PricewaterhouseCoopers, suggests that the suburbs offer superior opportunities for investors. Regardless of your opinion of them, there's no denying that suburbs are a key feature of the American property market. Here's why you should consider investing in suburban real estate this year:
The Suburbs are Attracting More Tenants
In the past, most people used to rent accommodation in cities and purchase property in the suburbs. However, according to the Real Estate Trends Report, more than 2.6 million people have moved to the suburbs, from large cities in metropolitan regions, during 2017 and 2016. In addition, suburban properties cost less on average than urban ones, and are usually in neighborhoods that are safer. Moreover, the properties tend to be bigger, there is more outside space and the schools are better in general. Research indicates that the quantity of suburban tenants is increasing quicker than in ninety-five percent of US metropolitan regions.
More Choice, More Appeal
Motivated by infrastructure improvements in the suburbs, developers in these markets are building new properties. As well as single family houses, lots of American suburbs now provide a broad selection of rental options, such as luxury homes, condo complexes, and garden style, high end, multi family properties. Consequently, it is fair to assume that the rental property supply is keeping pace with the growing demand.
Reduced Rates of Vacancy
Suburban dwellers are usually in no hurry to move. This fact, combined with the rising demand for rental homes, means that you are more likely to attract long term tenants. As a result, suburban rental properties will have lower rates of vacancy, on average, than rental properties in urban locations. Many people in cities frequently move house, because they change jobs and live busy lives. Better still, because suburban tenants tend to be more settled, they take better care of the properties they rent, so your repair bills will be lower.
Cost Effective Investment Homes
House prices have become extortionate in several urban areas of the American property market. Novice real estate investors usually refrain from purchasing properties in New York and San Francisco, for instance, because there is a dearth of affordable homes in these gateway markets. This presents a barrier to entry for inexperienced investors, who often lack the funds to get their foot on the ladder. Nonetheless, there are many less expensive properties available in suburban regions next to these markets. This is the perfect option for real estate investors searching for better value opportunities.
Final Thoughts
Suburban properties are growing in number, and are in high demand from tenants who want to live in them for a long time. This allows shrewd investors to maximize their rental income, which they can use to pay for various overheads and create healthy cashflow. For more valuable 2019 real estate trends and updates, you can follow Jacques Poujade on Facebook https://www.facebook.com/JacquesPoujade/.
コメント