Housing is an essential need of every human being. For people living in the US, it’s part of the American dream. But a staggering number of Americans are living their lives under a lease. Furthermore, more of them struggle to purchase a home due to the housing shortage. The industry is tackling the problem, but it may be taking advantage of it.
It’s estimated that the US lacks the homes to shelter every family in the country. Currently, the number of homes lacking is around five million. However, that number could be far greater in the future, as many real estate developers and contractors struggle to build enough homes for the people.
The housing shortage is certainly a problem. But there are some opportunities to be had in a shortage, and some can be attractive to investors. Here are some of these opportunities.
Construction Firms Are Busier than Ever
Now is the time for those who want to invest in the construction industry or start their own firm. There is a huge demand for homes to be built, and there aren’t enough firms to build these homes. It’s a lucrative venture and one that requires thousands of investors to fund it. However, it does pose some risks. First of which is that materials are more expensive.
Construction Materials Are Expensive
There are two reasons why construction materials are expensive. The first reason is because of quarantine protocols being implemented worldwide. This makes it hard for companies to ship materials to the US. Another reason was the recent blockage of the Suez Canal, which cost the world billions in shipping. In addition, there are thousands of backlogs that need to be accomplished beforehand, hence, making shipment a lot more expensive than before.
Lack of Workers
Another reason investing in the construction industry can be a risk is the lack of workers. Currently, the industry lacks workers due to the pandemic and the general state of the economy. This makes it challenging for projects to be accomplished.
What we suggest is that you invest in a firm that’s been well-established throughout the years instead of starting your own firm. This should alleviate any of the risks you might have for this investment. Another opportunity lies in homes in the market.
Houses in the Market
Despite the housing shortage, some homes are in the market to accommodate current home buyers. This means that there is an opportunity to be had selling homes to these home buyers. If you do it skillfully enough, they won’t notice the price increase. Therefore, your first strategy should be house flipping.
The average cost of brand new homes right now is $300,000. That’s beyond the budget of many home buyers today. So it’s all about finding ways to decrease that price without sacrificing quality. House flipping can do exactly this.
The idea of house flipping is to purchase old homes at a low price, invest money into remodeling and renovating it, and sell it to homeowners at market value. Many experts believe that you can sell many homes at a competitive level through this strategy. Additionally, because people are desperate for homes nowadays, they’d rather purchase your flipped home at a lower price than a brand new home for a premium.
A Boom in Online Sales
The real estate industry has experienced a boom in online sales because of the pandemic. Studies have shown that 90% of home buyers look for houses for sale on the internet, making this a lucrative venture. However, it’s all about having the necessary training and background to make these sales and a bit of real estate strategy.
You can make an active career choice today and take up real estate. In this way, you can become a virtual agent and sell homes on the internet. In addition, you can choose to stage some of these homes, especially those that are closest to you, so you can increase their chances of being sold.
Taking advantage of the increase in online sales throughout the years makes it possible for you to earn the big bucks during the shortage.
Real estate has always been a volatile market to invest in, especially during the shortage. However, if you’re knowledgeable enough about the industry, you can make great investments as you’ve never done before. Keep an eye out on trends, concentrate on the opportunities the housing shortage has given you, and you should get a fast ROI and high dividends in the future. Be smart in your investments.