The last few years have been a real rollercoaster in almost every respect — including economically.

The real estate market is no exception. Trends have changed quickly and things still haven’t settled down. So as the year progresses, it’s important to keep an eye on trends that may impact real estate investing.

Here are five real estate investment trends to watch in 2022.

1. Economic Uncertainty

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The COVID-19 pandemic has created a great deal of economic uncertainty, and this is likely to continue in the short term. However, many experts believe that the real estate market will rebound in the long term.

That uncertainty isn’t all bad news for investors at the moment. In fact, it could create opportunities for those who are willing to take on a little more risk. Property has been on a strong upward trend with the increased demand for housing, so it looks set to make a strong recovery — though commercial property remains a bit of a gamble due to the rise of remote working.

2. Low Interest Rates

Interest rates are still at low levels, and this is good news for those investing in real estate. Low interest rates make it easier to get financing and can increase your returns on investment. Read this blog for more about leveraging loans into investment while interest rates are low.

3. More Demand Than Supply

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Across the developed world, the demand for housing has been outpacing the supply for years. This trend is expected to continue in 2022, which could lead to further price increases in many markets.

This demand is good news for investors, who should continue to see strong appreciation in their properties. Yet as the pressure on housing continues, it’s also more likely to attract government intervention that could shake things up.

4. Changing Demographics

The demographics of the United States are changing, and this is likely to have an impact on the real estate market. For example, the millennial generation is now the largest group of homebuyers, but they’re also more likely to rent than previous generations.

That trend has led to greater investment in the rental market, and this is expected to continue in the years ahead. Many investors have shifted away from buying and selling real estate and more toward renting out properties to this generation of renters.

5. Technology Advances

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Technology is changing the way that the real estate industry operates. For example, more and more transactions are being conducted online. The rise of AI-driven property valuation tools is also making it easier for investors to find and respond to good deals in real-time. And new construction methods are making it possible to build homes faster and more cheaply than ever before.

Keep an eye on these real estate investment trends as you consider your strategy for 2022. By being aware of the market, you’ll be better positioned to make smart decisions about your investments — meaning you can take advantage of the situation and avoid its pitfalls.

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