Location, location, and location. This cliche is as valid today as it was years ago. But over time, the value of a given location changes… predicting the future value is one key factor in real estate investing.
For years, Alliance has been tracking population shifts toward high growth cities and suburbs, often in the Sunbelt. Our portfolio has successfully followed this growth trends for years.
As we look forward to the future, transportation technology will have a big influence on growth patterns. The trend toward electric transportation seems to be accelerating. Americans bought almost as many electric vehicles (EV) in the first half of 2021 as they did in all of 2020.
Autonomous driving technology is making big strides and several different companies are testing autopilot cars on the road right now. EVs with low fuel costs, high range, and (soon) autopilot are making it easier than ever for people to move to suburbs or smaller cities… and could drive huge demand for delivery services like Instacart.
At Alliance, we’re always monitoring the ways that trends such as tech, shifting lifestyle choices, and demographic change influence real estate markets. Real estate investments often play out over several years, so today’s tech changes will certainly have a big impact on future returns.