People often wonder what’s going to happen to the American housing market.
We’re living in a time of mass inflation and tons of economic uncertainty as millions of Americans continue adjusting to the fallout from the COVID-19 pandemic.
There’s a major transition taking place nationwide as people from major urban centers flock to “flyover America” in search of cheaper housing. As a result, there will be increased demand for housing in these areas, thus putting pressure on prices.
This is a familiar development in the history of housing prices. Housing can go through ups and downs, but there’s always a demand for housing. Even in times of economic instability, people adjust their expectations and will settle for smaller housing units.
Nothing is static in the economy. Yesterday, people may have been living it up, but the next day they are in dire straits.Though the current economic crisis is not an end of the world scenario for most people.
To the contrary, people will make changes to their lifestyles. If history has taught us anything, humans are tough as nails. They brave the worst of the economic elements and political upheavals.
The story of mankind is ultimately one of muddling through and acclimating to sub-optimal circumstances. People don’t just give up and die.
So, pump the brakes on any doomsday predictions you hear being pushed forward by many “experts” in the financial spaces.
Life will go on, albeit with people making substantial changes in their spending habits. Just like at any other point in history. This time, people will just be making profound changes with their housing arrangements.
Due to inflation and other economic shockwaves, people simply make compromises with regards to their living standards.
Shelter is one of Maslow’s Hierarchy of Needs and it’s not going away anytime soon. This is one of the many reasons why I’ve argued that real estate is the most historically proven asset class.
On top of the need for housing, there’s a major population shift taking place in America. As I mentioned before, people are fleeing expensive urban centers to move to so-called “flyover” states.
The reasons are quite simple. These states in Middle America tend to have lower taxes, lower cost of living, more business-friendly environments, much less crime, more space, and/or less noise. All of the aforementioned characteristics make these areas more attractive for urban dwellers.
This is one trend that income property investors should absolutely be on top of.
Also, let’s not forget this. Most of these people are moving to lower-cost areas that are situated in linear markets.
You know, the markets that are located in Middle America and the Sun Belt that are known for having little price fluctuation.
This is where you will build the foundations for a rock-solid investment portfolio laden with streams of cash flow.
Contrast to the cyclical markets, which have massive price volatility. If you’re caught in the bust phase of these markets, your cash flows will take a beating. Moreover, a larger portion of cyclical markets tend to be located in blue states which are more pro-tenant and often put landlords at a major disadvantage.
In this real estate game, it just makes sense to avoid any type of headaches. Real estate investing is not an easy task. And adding more roadblocks to your journey is not doing you any favors.
In the meantime, get the scoop on the latest developments taking place in housing markets throughout the US.
Check out my interview with Tina Tamboer, Senior Housing Analyst at The Cromford Report, in a video titled “Housing Market FINALLY Slowing Down?
Watch at the link below:
https://www.youtube.com/watch?v=L_vaYeMqYcQ
P.S.Income property investing can be intimidating for some.
I’ll be the first to admit. It’s not an easy field. But you can master it.
The best way to do so is by finding like-minded individuals who possess experience in the field.
This kind of advice can break whatever plateau you find yourself in.
At Empowered Investor Pro, I’ve assembled a community of income property investors who have been there and done it.
These people will play a critical role in bringing you to the Promised Land of constant cash flows and strong portfolio growth.
Want to join the hottest real estate investing network in the nation?
Sign up for Empowered Investor Pro below:
https://www.empoweredrei.com/empowered-investor-signup1
