MARKET & TRENDS: 2024 REI TRENDS
that many people who aren’t in the real estate investing business may be surprised to hear,” said Goodwin. “But the reality is that low inventory in the resale housing market still allows a flipper to gain returns on their investment if they have a good product.”
2. STEADY MORTGAGE RATES
With 30-year fixed mortgage rates exceeding 8% in 2023, the market is expected to slow down. However, Goodwin views this as an opportunity for smarter long-term planning and decision-making. “There are still enough buyers out there to support the low inventory and move product,” he said. “Mortgage rates remain steady and slow, but it is still a better market overall than it was at the tail end of 2022. You’re not seeing inventory rise quickly or prices drop as deeply.” 3. LONG-TERM BENEFITS OF SINGLE-FAMILY RENTALS Despite challenges such as escalating property taxes and insurance rates, patient investors in the single-family rental market can reap rewards. Profit margins on median-priced properties increased to 59% in the third quarter of 2023, highlighting the stability of single-family rentals as investments against inflation. 4. STRATEGIC LOCATION CHOICES Location remains crucial for real estate investments. Emerging markets in the Sunbelt and Midwest offer favorable outlooks compared to pricier Northeast and West Coast markets. Goodwin suggests exploring under-the-radar tertiary cities. He highlights Memphis,
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5 Real Estate Investment Trends for 2024
DESPITE THE CHALLENGES AHEAD, MAKING INFORMED DECISIONS CAN LEAD TO GOOD RETURNS IN 2024.
KIAVI
I n the dynamic landscape of real estate investing, 2024 presents both chal- lenges and opportunities. Despite eco- nomic uncertainties like surging mortgage rates, fluctuating housing prices, and low inventory, the real estate market remains a gateway for first-time and small-scale investors to build generational wealth and contribute to local community revitalization. Charles Goodwin, a seasoned single-family rental investor and senior director at Kiavi, emphasizes the importance of recognizing smart long-term investments and
developing realistic exit strategies. Looking ahead to 2024, Goodwin identifies five key trends that investors should consider.
1. RESILIENCE OF FIX-AND-FLIP
Despite housing affordability reaching historic lows and mortgage rates soaring, the fix-and-flip market persists. Goodwin notes robust demand, making it an attractive investment. “Professional fix-and-flippers have been doing very well in 2023, which is something
34 | think realty magazine :: march – april 2024
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