The real estate market is constantly changing, and new issues—and disasters—pop up all the time. It can be difficult to navigate the unsteady waters of real estate. That being said, a lot of the big challenges facing real estate are trackable trends that can be anticipated. Below we will outline just a few of the challenges facing real estate in 2018 and the ones it will likely face in 2019.
You might have heard that the millennial generation is the largest generation in history by population. The average first-time homebuyer is currently in their early 30s. Real estate agents and mortgage brokers will be flooded with more and more buyers in coming years, which will likely cause as many challenges as it does opportunities.
Empty properties invite vandalism and theft, and can serve as backdrops for other criminal activities from illegal dumping to robberies, assaults, and drug dealing. Vacant malls aren’t the only hazard; the trend of young urbanites exploring abandoned buildings and taking photographs or painting murals in them leads to liability concerns for the property owner should those explorers die or be injured.
The Changing Tide of Technology
Technology will also be a big factor in the coming years. As companies continue to create and innovate more efficient ways of doing almost everything, office space needs shift. Telecommuting has become more viable, including in sectors where it was previously impossible, with many employees opting to work from home instead of going to an office. The result? Companies need less workspace.
In addition to ecosystems, property has also become a casualty of natural disasters. A record number of floods, earthquakes and wildfires have ravaged communities, public infrastructure, and both business and residential property. Natural disasters like the giant wildfires currently roaring through California are prime examples of the heightened risk. This makes property owners, buyers, renters, brokers and insurance companies adapt to a much different landscape.