Retailer strategies and consumer shopping trends provide some great indicators of which types of real estate are likely to be the most in-demand as we roll into and through 2024.
$2M Bottles Of Liquor & Online Shopping
A bottle of whiskey just sold for $2M at auction. This shows that the affluent are still happy to spend freely on things that they want to make them happy and to have bragging rights when out with friends.
Of course, most retailers seemed to skip right over Thanksgiving this year and began their Christmas sales even before Halloween was over. Perhaps this signals that they believe many consumers may have little money left by the end of the year.
While online shopping rose by around 7.5% over last year’s Black Friday according to Adobe, expectations are that overall holiday sales figures may be mediocre again this year.
Consumers did not seem to show up in force to brick-and-mortar Black Friday sales. Many expressed they are less than excited by the sales ‘deals’ being advertised this year. Weak deals on items that consumers already perceived as being grossly overpriced seem to fail to motivate them.
So, where does this suggest the most demand will be for real estate over the next year?
Higher-End House Flips
Luxury home buyers are still on the move. They still have the capital to spend. They are not as impacted by recent interest rate hikes.
Value-added investment strategies that can take discounted inventory and turn it into an attractive end product will still prove to be very profitable and put investors in control.
Affordable Housing
For the rest of the population, the theme is increasingly being price sensitive, and working with tighter budgets. They have to. Everything has become more expensive in terms of living costs.
Between remote work and layoffs in former business hubs, more workers are likely to relocate to more affordable destinations. There they may work online, or find commutes to cities with industries that are less impacted by AI.
Expect a significant increase in the number of households needing to rent, and more being squeezed to find less expensive places to live.
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Image by Jill Wellington from Pixabay
Article Source: https://nngcapitalfund.com/holiday-sales-trends-point-to-best-performing-real-estate-sectors-in-2024/
