Downtown Nixa Mark Anderson is a serial entrepreneur and partner of On-Side Construction, LLC, and Morning Day Café. In the following article, Mark Anderson discusses the trends and opportunities for investors and developers in the real estate industry.
Missouri’s real estate development is always on the move. Because of it’s growth, it can be hard to keep up! Whether looking to get in on the development game or capitalize in real estate development, investors need to understand the trends and opportunities available.
Missouri real estate development trends include inventory constraints thanks to COVID-19 leading to a rise in prices, while the same conditions cause there to be a higher demand for suburban homes.
In this article, Downtown Nixa Mark Anderson discusses the most likely future of Missouri’s real estate development. Any potential investors or developers of real estate should have a thorough understanding of where the industry has been, where it’s going, and how to be a part of it.
An Overview of Real Estate Development in Missouri
Downtown Nixa Mark Anderson says that there’s a lot to talk about within real estate development. Innovation and competition within the market is causing constant shifts in trends, which in turn has ripple effects on the future of the business. The state of Missouri is no exception to this.
Downtown Nixa Mark Anderson prepared some bullet points of real estate development trends in Missouri.
In order to make the most of the opportunities that are presenting themselves, investors and developers alike will be given a more in-depth look at each of these categories below.
The Current Real Estate Development Trends
Downtown Nixa Mark Anderson says that figuring out how any business is fairing with current trends is essential, and real estate development is no exception.
Currently, the real estate market, specifically in housing in Missouri, is in the middle of a huge shift. According to Redfin’s statistics, in February of the year 2023, the prices of homes in Missouri were up by 2.3 percent when compared to the prices of the previous year at a median price.
Downtown Nixa Mark Anderson says that this means that housing is experiencing a large uptick in prices, though Missouri is technically one of the most inexpensive states in the country when it comes to affordability. In fact, it is this reputation that provides many of the opportunities for real estate development investors!
Real Estate Development Opportunities
Speaking of opportunity, it is essential for both developers and investors to know not only the trends of the market, but how many opportunities for advancement and profit Missouri’s real estate business offers them.
Missouri’s real estate investors can be excited about the lower profit margins of the state and the even lower rates of interest. Downtown Nixa Mark Anderson explains that at over five percent, the rates make borrowing money much more reasonable, and lower interest rates increase the cash flow of rental properties while dropping monthly obligations.
In addition, rental unit demand is sure to stay very high, while the low inventory of the state allows people who wish they could buy to lean toward renting instead, to the profit of developers and those who invest in rental property development.
Real Estate Development’s Future
Downtown Nixa Mark Anderson says that it is highly probable that, in the development of real estate, Missouri’s market for housing property will keep moving in the same direction as much of the U.S.A. Affordability in Missouri will attract more purchasers, inventory constraints will continue to be present, and more residents will flock to the suburbs instead of remaining in cities and near work locations.
After the national pandemic of COVID-19, many people discovered that living in close proximity to their place of work was not actually necessary. Because of this, people began dropping their expensive rentals within city limits to head out to the suburbs. These are larger, cheaper, and more and more popular.
What this means is that in future, as the affordability of median home values and the desperation in the market driven by inventory constraints, suburban homes in real estate are likely to be the most lucrative investments.
Downtown Nixa Mark Anderson reports that the future of development trends and opportunities for investors and developers can be summed up by understanding that Missouri’s affordable suburban homes will increase in popularity among buyers even as prices rise due to inventory constraints.
The market for investors and developers alike to begin pouring their time and resources into Missouri’s real estate development, especially in the suburbs, is very hot!