With the new year just beginning, many investors are wondering what are the most interesting destinations for real estate investments 2021.
OPISAS has created for you an analysis of the most attractive real estate destinations for the current year.
Undoubtedly, the incoming of Covid-19 has brought noticible effect in the ranking of the best cities on which to invest your savings. Changes that are reflected in the trend of values concerning housing and rental market for bringing to the fore locations less known by the international investor but with really interesting numbers.
Would you like to know more?
Here is an overview of the trends for your 2021 real estate investments:
Covid-19 has completely transformed the housing choices of the average American and the way they live in the home environment of US citizens, but the reaction to the pandemic was also yet another confirmation of how social, work and consequently housing dynamism is one of the main drivers of the residential market in the United States.
The American Residential Market held up well during 2020. Especially for how much it concerns the rental sector, which has remained stable thanks to the huge state aid received by citizens during the pandemic which contributed to timely payment of rental fees. Moreover, thanks to the new administration that has recently taken over the White House, the extraordinary subsidies for unemployment will be raised to $ 400 per week.
Tampa and Detroit are just some of the trending cities identified by OPISAS where to invest in USA, these two locations perfectly represent the trends in real estate investments 2021 that will characterize the American real estate market.
Why?
The main trend for real estate investments 2021 is to move out of the first choice metropolises, favoring less known destinations to foreign investors. Smaller cities though guarantee a lifestyle and superior well-being, without sacrificing the quality of services.
The choice of the average American, following the pandemic, in fact considers different factors than to the pre-pandemic situation. Therefore, to choose where to invest own savings in 2021 we cannot ignore a careful analysis of new habits: travel made more difficult and the need to convert job duties into smart working have led to a search for properties with more spacious interiors and better served locations.
In response to these requirements, the residential neighbourhoods in the suburbs are shown to be more suitable to meet the requests from both, individuals and families with children. The latter, in fact, prefer locations out of the great chaos of the city, equipped with excellent services and educational institutions.
For the post-pandemic, the trend of real estate investments in 2021 is not worrying for the Urban areas either which will return stronger than before, thanks to the need of the single individual to restore his social and living habits.
In this, the demographic factor will be crucial and it will be Generation Z and the Young Millenials, the key elements for the recovery of cities. Forced by the lockdown to share four walls at home with their parents will in fact be among the first to go to the city centers search for their own spaces, but above all for a normal life. And what better place to do it if not the beating heart of the city?
If young people feed the rental market in city centers, it is very different for families and adults closer to retirement.
After years and years of work behind them, many of the latter have decided to anticipate theirs post retirement relocation. After all, why wait when you can work fully comfort from your own beach house in Florida?
Among the most requested destinations in the real estate market for the new year, Tampa, Florida is one of the main OPISAS locations. This is mainly due to the way in which this area is perceived by the average American: a place with mild temperatures and that arouses the interest of individuals who dream of the longed-for relaxation of retirement.
But let's go into more detail …
Tampa is located on the west coast of Florida, overlooking the Gulf of Mexico and is among the largest cities in the state. The town is a nerve center where several companies are based
belonging to the Fortune 1000, not an unattractive factor for a young person looking to make a career. As if that weren't enough, Tampa is the second largest area in the state in terms of population, the Florida's first port by tonnage and second in terms of cruise ship transit. In addition, the city is home to the important MacDill Air Force Base, a military installation that occupies 15 thousand military and civilian units.
All these factors combined make Tampa an extremely attractive market for real estate investments in 2021. To demonstrate this, just take a look at the Standard & Poor's / Case-Shiller index, national indicator that measures the trend of the prices of single-family homes in the twenty main urban areas of the United States. The index records that the value of housing in Tampa, compared to the last year, increased by 9%, while according to Zillow the 2021 forecasts indicate a possible increase of 10.9%.
And the rental market? The prices of one-bedroom apartments have risen by 5.49% compared to last year, while those with two bedrooms increased by 6.97%.
Not only Florida, we said. For different reasons Detroit is another very interesting location where to invest in 2021.
Detroit is the main city in the state of Michigan with 720,000 inhabitants and nearly 4.3 million residents in its metropolitan area including 2.1 million workers. In a few years the city has suffered a profound transformation, rising from the ashes and returning today to be the second economy of the Midwest, just after Chicago and the fourteenth of all the USA.
The city began its renaissance in 2014, focusing on innovation and development. By diversifying its economy, Detroit has managed to attract leading companies active in sectors such as finance and services. The city now hosts the offices of Deloitte, Quicken Loans and DTE Energy, in addition Detroit collectively hosts over 30 Fortune 500s including General Motors, Ford Motor, Kellogg Co and Whirlpool.
See yourself the "renaissance" of the city and the neighborhoods to invest in Detroit with OPISAS.
In a short time, Detroit has become a highly attractive destination to invest in USA. Further confirmation is given by the Standard & Poor's / Case-Shiller index, which sees the city in Michigan growing steadily with a 6% increase in real estate value in September 2020 and with Zillow's forecasts predicting an increase for next year around 12.2%.
Without forgetting the situation of the rental market, which includes two Bedroom apartments grow by 6.68% compared to the previous year and those with one bedroom remained stable.
Summing up…
Covid-19 has transformed the housing choices of Americans, who are now moving towards second tier Cities. One example is cities like Tampa and Detroit, which allows them to choose between larger housing units with lower prices than those of large metropolises but without losing the quality of the latter's services.
Data on hand, Detroit and Tampa, are therefore two very promising cities from the point of view of real estate investments in 2021 and strategic opportunities to diversify your own portfolio.
Investing in the USA may seem complicated, but thanks to partners with proven experience like OPISAS becomes simple and immediate.
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