There are a number of new trends that are having a huge impact on the property market in the USA in 2016. Some of these factors are global – for example, the Brexit referendum should be seen as a net positive for the US housing market, as it would push more investors to put their money here rather than in the UK.
There are other major developments as well, which have had a huge impact. Whether you’re looking to sell your apartment in the USA fast, or want to buy bargain real estate in the USA online, you will probably find the information given here quite useful, so we urge you to read on.
Let’s begin with the global financial situation. Stock markets around the world have been very volatile, many international currencies are in big trouble, especially the British pound, following the Brexit referendum.
The IMF has revised the GDP growth forecast for a number of countries downwards for the financial year 2016-2017. Because of weakening oil prices and the slowdown in commodities, many countries in Europe and the Middle East have had to deal with lower exports.
This is actually positive news for the property market in the US, as it would mean that more wealthy investors around the world would find the U.S. to be a safe haven for their investments in such volatile times.
Energy markets have been rather unstable too. The oil production in the Middle East is the lowest it has been in many years. This has affected the oil producing regions in the USA too. Houston and North Dakota have been facing some sort of a mini-recession since the last few years, even as the rest of the country has been witnessing an economic revival.
Many insurance companies and banks that traditionally offer loans to real estate companies in Texas have been holding back. The lending environment in commercial real estate is particularly restrictive, and this should affect the residential real estate market as well.
Let’s talk about the demographic factors. There are today more Millennials in the US than Baby Boomers. This is a big change and has many major consequences for the real estate industry. Millennials are not exactly big buyers of real estate, as they are saddled with a lot of student debt. 36% of the Millennials in the USA have opted to live with their parents and most have decided to delay marriage. This has negative consequences for homeownership in the country.
A large section of the US population has been aging, which means there is a strong demand for living options such as assisted living and memory care services. Retirement homes are likely to fuel the next shift in the domestic real estate market.
There’s a lot of demand for smaller homes, which are at walkable distances from workspaces. The old American tradition of living in a suburb and commuting to work every day by car is on the way down. Younger people in the USA are more environmentally conscious and would rather walk to work and live in smaller, eco-friendly homes or apartments.
So, the story is that the property market in the USA is a bit of a mixed bag. There are a plenty of good news and a few bad news, but the momentum is very much on the positive side.