There are a lot of questions about what the economic climate will look like throughout 2019. Between the longest federal shutdown in American history, a potential trade war with China, and concerns about the chance of a recession, the future is certainly uncertain. And while real estate investments generally plummet as interest rates rise, that doesn’t mean that 2019 isn’t a good year for those looking to put their money in the market. While America’s short term financial may be uncertain, global growth is forecasted to be strong. That, combined with a level of homeostasis between supply and demand should lead to a stable or even growing market. But that doesn’t mean that all investments are created equally.
Multi-Family Housing is In
Traditional home development may be weathering a storm, but there’s always going to be a demand for housing. Apartment investments should hold strong throughout this year and beyond, and that should continue to be the case even if America is forced to deal with a recession. Economic downturns depress homeownership and result in a flood towards rentals, and that could be a boon for investors. Regardless, apartments continue to be a sound investment in practically any market, and they’re a great go-to in times of uncertainty.
As Are Industrial Developments
The e-commerce revolution doesn’t show any signs of stopping soon, and that means that warehouses and data centers continue to be in high demand. Just be sure to watch the economic situation closely. An active trade war with China could cause e-commerce retailers to take a more conservative approach to growth and cause a slowdown in the industrial market.
But Traditional Retail is More Uncertain
E-commerce has yet to spell the death of the brick and mortar retail sector, and there are signs that this brand of real estate could actually be making a comeback. Many e-commerce retailers have showed interest in expanding their visibility by opening physical locations, and there’s a promising trend of developing mixed use developments that produce their value by offering experiences rather than simply being places to make a purchase. But potential investors should be cautious when pursuing retail opportunities, since they’re likely going to be one of the first casualties in the case of substantial economic upheaval.