Why is NOW the best time to invest?
POPULATION GROWTH & HOUSING DEMAND
The DC metropolitan area has experienced substantial economic growth, driven by factors like job opportunities and major investments from companies like Amazon. With low unemployment rates and steady job growth, the region provides a favorable environment for real estate development., as more people seek housing options in the region.
✦ 3% of homebuyers nationwide expressed a desire to relocate to Washington DC from outside metropolitan areas
✦ Home values in DC metro area increased 2.2% while rents up 2.8% in 2022
✦ 3% of homebuyers nationwide expressed a desire to relocate to Washington DC from outside metropolitan areas
✦ Home values in DC metro area increased 2.2% while rents up 2.8% in 2022
SHIFTING BUYER PREFERENCES
There has been a notable shift in buyer preferences towards modern and upscale homes. The NAHB survey pointed out that homebuyers are increasingly prioritizing features such as open floor plans, energy efficiency, and smart home technology. Zillow report highlighted that millennial homebuyers, who represent a significant portion of the market, have a strong preference for move-in ready homes with modern designs.
PRICE APPRECIATION & NEW CONSTRUCTION PREMIUM
The D.C. metropolitan area price appreciation has been comparatively lower than national average in recent years; from September 2019 to September 2022, Washington, D.C. witnessed a 22% increase, whereas the national average during that period stood at 43%. Cities that saw the most rapid appreciation are now at a higher risk of a price correction while D.C. metro market is steadily growing, showing resilience in the face of market fluctuations. Multifamily homebuyers are also willing to pay a higher premium for a home that fits all their needs.
KEY TRENDS IN REAL ESTATE
The value of Global Real Estate market is projected to reach $3.99T in 2023 and $5.85T by 2030 growing at an annual growth rate (CAGR 2023-2030) of 5.20%, according to a report by Grand View Research
Residential Real Estate dominates the market with 35% share since 2021, largely attributed to the increased millennial home ownership.
Some of the wealthiest counties in the U.S. are located in close proximity to Washington, D.C. Specifically, nine out of the top twenty richest counties can be found in Virginia and Maryland. Among these counties, Loudoun County, Falls Church City, and Fairfax County in Virginia.
The US home improvement market, valued at $538 billion in 2021, is expected to grow at a CAGR of 4.1% over the next years. The market is projected to reach $621.3 billion by 2025, showing significant expansion opportunities in the coming years as a result of technological advancements in the housing industry, growing population, and increase in home remodeling projects.
The home improvement segment is subdivided into two main groups: DYIers who prefer to do the remodeling projects on their own, and DIFM (Do It For Me) group who typically hire small to mid-level contractors for the improvement projects. The DIFM segment revenue is likely to reach $315 Billion USD by 2027 as a result of rising demand for luxurious interior and exterior decorations and upgrades to technological amenities.
Join us in solving the housing crisis and helping more families in the DC metro area. Find out what makes us different from other real estate funds.
