Go Bigger and Go Home - A Look at Real Estate UpsizingAdmin
Published Date: 2018-08-24
Have you, like millions of others, watched the whole tiny homes trend develop? People downsizing their possessions to such a degree that living in homes of 300 square feet or less is the foundation of this trend, and yet it remains strong. Only, it is not as strong as another trend, and that one is known as upsizing. As one article recently joked, "Downsizing? That’s so 2016. Housing trends indicate a move toward bigger, not tinier, homes…" Yet, this is also indicative of a corporate housing trend, too. What we mean is this - housing supplies in the larger urban areas are on the decline, and more and more are finding that they can only afford tiny properties if they also wish to remain within the city. As that article noted, many moves just outside of their cities and opt to invest in or build larger homes. This leaves a lot of smaller properties available within the cities. These then become ideal candidates as short-term apartments, which is part of the increasing corporate housing trend. These smaller homes are exactly what traveling professionals desire. Rather than an unwelcome stay in a long-term hotel, the short term apartments with their separate living and sleeping areas, their in-building amenities, and their home-like feel are a superior choice. The corporate housing trend has been veering away from extended stay hotels and instead of turning towards furnished and welcoming short term apartments. So, the upsizing trend, which is leading more and more urban dwellers to head to the nearest suburban regions is a good thing for property investors and supporting the corporate housing trend in one or two bedroom apartments. Naturally, not all areas are in this exact position, but most of the country's growing metro areas do reflect this shift. For example, the "median square footage of new homes is up 20 percent since 2000, from about 2,000 square feet to about 2,500 square feet… Fifty-six percent of millennials said that having a large home is important to them, compared with 42 percent of Gen Xers and just 35 percent of baby boomers." So, if you are eager to invest in corporate housing properties and furnished rentals, you will find that there are more and more of the smaller, short-term apartments becoming available. Choose the right neighborhoods and this exodus into the suburbs will actually work to your benefits.