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Andrés Glennen

Why invest in Real Estate in the United States

Real Estate Trends in the United States: A Detailed Analysis

The U.S. housing market is in a state of continuous expansion. In 2023, There has been particularly marked growth in the state of Florida, exceeding national expectations. The inventory of new homes for sale has seen a significant increase, with a growth of 16% compared to the previous year. This upward trend is also reflected in the increase in employment, which contributes to the increase in demand for housing, which still exceeds the existing inventory.

Demographic Distribution of Housing and Regional Growth

Analyzing the demographic distribution of real estate ownership in the United States reveals a fascinating picture. Not only do people aged 45 to 65 make up a significant part, representing more than 70%, of those who own homes in the country, but also outline a market where real estate ownership is predominantly in the hands of middle and elderly citizens. In addition, it's essential to explore regional variations in property growth, with the Midwest and South standing out as the regions with the most notable rates of home ownership and acquisition.

Florida: A Booming Real Estate Market

Florida has emerged as a central and vibrant player in the United States real estate market. Over the past three years, it has experienced impressive growth, marking a 29% increase in the value of residential properties. This boom is attributed to key factors, such as economic diversification, strategic investments in infrastructure, and the state's undeniable appeal to large employers and entrepreneurs. It should be noted that Florida has established itself as the second preferred state to live in the United States, according to the newspaper's news report Infobae.

This recognition supports and reinforces our perspective on Florida as a prominent benchmark for investments. The association between “preferred place to live” and “real estate investment opportunity” acquires special relevance. The influx of immigrants who choose Florida as their preferred destination of residence generates an increasing demand for rentals, as many choose this alternative instead of buying properties. This increase in demand makes Florida a growing real estate epicenter, attracting sustained attention from investors in the region.

U.S. Housing Market Crisis: Lessons Learned

The U.S. housing market has a history marked by past crises, especially during the 2008 subprime mortgage crisis when home values plummeted, leaving disastrous consequences in its wake. Reflecting on these past crises is crucial to making informed investment decisions in today's market.

However, unlike 15 years ago, Foundations of the real estate market they seem to be in a more stable position today. The supply of homes for sale in states like Florida is near historic lows, and debtors are more creditworthy than ever, contributing to greater stability in the market.

Current Stability and Reasons for Optimism

Despite concerns about a possible correction in housing prices, the housing market is unlikely to collapse in a manner similar to the Great Financial Crisis of 2008, particularly in cities with positive immigration flows. Industry experts Some of the reasons for maintaining optimism indicate several reasons for housing:

  • Limited Supply and Sustained Demand: Limited inventory remains a key factor in the market, while demand from young adults seeking to become homeowners remains robust.
  • Credit Strength: Current mortgage holders have a solid credit quality, which contributes to market stability and reduces the risk of default.

  • Price-Income Ratio: The ratio between house prices and incomes has remained at more realistic levels compared to the boom prior to the 2008 crisis, reducing the likelihood of speculative bubbles.
  • Modest Price Decline: Forecasts for 2024 suggest a modest decline in home values nationwide, perhaps between five and ten percent. Despite this decline, overall market stability remains intact.

Tokenized Real Estate Investments: The Opportunity of the Future

In the real estate market, we know that competition is fierce because of its historical record. This business, although rigid and full of secrets, is often faced with a scenario of scarce investment opportunities.

Tokenized investment has emerged as an innovative and accessible solution. Blockchain technology enables new investment opportunities and increases liquidity in this sector. Several reports from large consultancies already show that this trend is destined to be the next boom.

As indicated by the consultancy firm Boston Consulting Group, in less than ten years, asset tokenization will exceed 16 trillion dollars and will represent 10% of global GDP in 2030. While the World Economic Forum believes that this milestone will be reached sooner, in the year 2027.

Portfolio Diversification

One of the main advantages of tokenized real estate investments is their ability to allow the diversification of the investment portfolio without the need for large sums of money. With real estate tokens, investors can acquire high-value real estate shares without having to invest large amounts of capital. This democratizes access to real estate investment opportunities that were previously reserved for high-net-worth investors.

For Reental, this diversification represents a key opportunity to offer its clients a wider range of investment options, while adjusting to their specific needs and budgets. By providing access to high-quality real estate investments through tokenization, Reental positions itself as a leading facilitator in the real estate investment market.

Transparency and Security:

Blockchain technology, on which tokenized real estate investments are based, offers unprecedented levels of transparency and security in transactions. Every transaction is recorded in a decentralized, immutable ledger. This inherent transparency builds trust among investors, as they can track and verify every transaction securely and efficiently.

For Reental customers, this transparency and security provides peace of mind. They know that their investments are protected and that they are participating in a fair and transparent real estate market. Reental's reputation for reliability and security is reinforced in comments and reports from their own investors.

Growth Potential:

In addition to diversification and security, tokenized real estate investments also offer long-term growth potential. As you invest in tokens from the projects we launch, you will receive a monthly passive income from their exploitation and also a profit from the sale of the property and its revaluation in the market, offering significant opportunities for capital appreciation for investors and liquidity 24/7.

For Reental, being at the forefront of this emerging trend means being in a unique position to capitalize on this growth potential. By offering real estate investment opportunities aligned with market trends, Reental stands out as a visionary leader in alternative investments.

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