Real estate investors often face criticism, but they play a vital role in the housing market by maintaining its health and viability, especially individual investors. Despite some valid criticisms, these investors contribute significantly to local and national real estate trends.
Real estate investment impacts both individuals and the market, influencing local and national trends. Here’s how investors influence the market the most:
1. Property Upkeep and Values
Real estate investors often purchase distressed properties, renovate them, and improve housing quality, thereby raising local property values. They also maintain the condition of these properties to prevent neighborhood safety and value deterioration caused by abandoned or neglected properties.
Despite criticism, investors who revitalize abandoned properties play a crucial role in progress and neighborhood improvement. Their willingness to take risks and invest in revitalization benefits communities by providing more housing options and stimulating economic activity.
2. Alternative Housing Solutions
Rental properties offer a stable percentage of total home inventory, providing accessible and flexible housing solutions. The build-to-rent (BTR) model also increases housing supply, especially as homeownership becomes increasingly inaccessible.
3. Community Involvement
Investors, even those from out-of-state, positively impact their investment markets by contributing to local businesses and economies. By supporting contractors, builders, agents, and property managers, investors play a significant role in the economic development of communities.
4. Market Recovery
During the Great Recession, real estate investors played a crucial role in accelerating market recovery by purchasing distressed properties, converting homes to rentals, stimulating economic activity, providing liquidity, and increasing market confidence.
5. Tax Revenue
Investors’ tax contributions fund public services, programs, and infrastructure improvements, enhancing the quality of life in cities and states. Real estate transactions generate significant tax revenue through property taxes, transfer taxes, and fees, benefiting local governments.
Despite some negative perceptions, real estate investors have a significant positive impact on the market, benefiting both individuals and communities far more than commonly realized.
This article is presented by REI Nation
Ready to add turnkey real estate to your portfolio in 2024? If so, now’s the time to invest with REI Nation. Where you invest, and they handle the rest.
Discover stress-free real estate investing with the largest family-owned turnkey investment company, REI Nation. Whether you’re a seasoned investor or just starting, they are dedicated to helping you achieve your financial goals in the world of real estate investing. Visit our website to start your turnkey real estate journey, where your success is their commitment.
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.
