Sunday, April 28, 2013

Current Real Estate Trend 2013

I have a link below describing a new trend in residential homes in real estate in the aftermath of the 2008 crises that is called "Multigenerational Homes."

The basic idea is to build a house to accomadate multiple generations of families within the same home, such as a families' parents coming and living with their children, or children returning after college to live with their parents. They use the space more efficiently than before, instead of having huge garages or large rooms, they focus on providing living area for multiple people and some even are semi seperated from each other with their own kitchens etc.

The video link below describes all of this more in detail and shows some examples and designs of the types of homes mentioned above. There is a rather large market for these types of homes, especially during a time of low demand for newly built homes. This allows builders to continue making homes even though they are slightly different than the traditional homes that we have seen in the past, and vastly different from the large and extravagent homes that were being built right before the crises in 2008.

Video Link:
http://realestate.msn.com/video/video.aspx?videoID=51f6683a-4ec1-4d15-8461-7c0487178898&from=msnrealestate_ss



"8 New-home trends for 2012." RealEstate.msn.com. 2012. Web. 28 April 2013. http://realestate.msn.com/8-new-home-trends-for-2012
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Investing in Real Estate in Lake Jackson, TX

 

If I were investing in real estate this summer I would do it in the retail sector in my hometown of Lake Jackson Texas. There has been lots of highway and road construction within the city in order to accomodate an increase in traffic due to the expected increase in the amount of jobs and families in the area.

Single family home sales have been cut in half in the recent years since 2008 so the decline in residential building coupled with the increased traffic in the area leads me to believe that the retail sector will trend up. Also the city lacks retail establishments, of course there are current establishments, but I feel that the area is extremely lacking in entertainment locations, retail sales locations, and restaurants.

  • 2005: 47 buildings, average cost: $220,100
  • 2006: 42 buildings, average cost: $275,200
  • 2007: 49 buildings, average cost: $217,300
  • 2008: 28 buildings, average cost: $163,100
  • 2009: 13 buildings, average cost: $161,900
  • 2010: 19 buildings, average cost: $152,500
  • 2011: 11 buildings, average cost: $254,900


    • Read more: http://www.city-data.com/city/Lake-Jackson-Texas.html#ixzz2Ro1SGAB9

    By looking at City-Data.com you can see the decline in home building as well as the lack of restaurants as compared to the average for texas. There is a slightly higher percentage of supercenters such as Walmart located near the center of retail spaces for the city. There is definantly much room for more restaurants and entertainment for the residents of the area due to the lack in general as well as the projected increase in traffic to the area.

    Food Environment Statistics:

    Number of grocery stores: 29
    Brazoria County:

    0.99 / 10,000 pop.
    State:

    1.47 / 10,000 pop.
    Number of supercenters and club stores: 6
    Here:

    0.20 / 10,000 pop.
    Texas:

    0.14 / 10,000 pop.
    Number of convenience stores (no gas): 33
    This county:

    1.13 / 10,000 pop.
    Texas:

    1.11 / 10,000 pop.
    Number of convenience stores (with gas): 121
    Brazoria County:

    4.13 / 10,000 pop.
    Texas:

    3.95 / 10,000 pop.
    Number of full-service restaurants: 132
    This county:

    4.50 / 10,000 pop.
    State:

    6.13 / 10,000 pop.


    Read more: http://www.city-data.com/city/Lake-Jackson-Texas.html#ixzz2Ro2Ak0HZ

    Here is some data for the Houston area that should be similar however I assume slightly lower for Lake Jackson since it is roughly an hour south of Houston.

    The rent per square foot averages and vacancy rates are as follows:
                                                                               
                                                                                  Rent                      Vacancy
    Downtown:                                                          $35.41                     5.0%
    Neighborhood Service Center:                          $13.45                     11.0%
    Community Power Center:                                $15.25                     7.0%
    Regional Mall:                                                     $22.62                     7.0%
     There is plenty of room within Lake Jackson to build new retail centers, entertainment venues and restaurants to occupy the population there. This, coupled with the increased infrastructure and traffic in the city is why I believe that the retail sector is the place to invest, also the citizens there mostly believe that there is too little to do for entertainment and recreation.  
    "Lake Jackson, Texas." City-data.com. 2012. Web. 28 April 2013. http://www.city-data.com/city/Lake-Jackson-Texas.html

     
    "Market Report 2012 Houston." Real Estate Center Texas A&M. 2012. Web. 28 April 2013. http://recenter.tamu.edu/mreports/



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