The Top Buyers & Renters In Today’s Market
By JD Esajian on November 13, 2015
Who are the strongest homebuyers and renters in the U.S. property market?
Knowing who the most active renters and buyers are in the market can help real estate investors target their marketing and position their properties in a better place to sell.
While the U.S. job market is in far better shape than it was a few years ago, there continues to be a lot of disparity between incomes. Some are seeing an incredible lift in income. Others just can’t seem to keep up, even with a new $15 per hour minimum wage.
Of course, with things changing, so have renter demographics. Here are 11 buyers and renters that may be the best positioned in the current market:
1. Dentists: According to U.S. News’ 100 Best Jobs report, dentists are number one. If you’ve been to the dentist recently, you know why. They make a lot of money for being trusted with our teeth. Even dental assistants are reportedly making an average of over $70,000 a year in 2015. With dental insurance being cheaper than health insurance, it is one of the first steps everyone else on this list will make as they get on track with their finances. That means dentists are flush with cash, and may be looking to upgrade their housing.
2. Doctors: A massive number of boomers are entering their peak years for needing medical care, and Obamacare suggests doctors are busier than ever. Doctors not only need to keep up with the status quo in their field for housing and offices, but are often strong real estate investors too.
3. Pastors: Nonprofits and churches were some of the hardest hit during the recent crisis. People didn’t have money to give. That’s changing, and with the new culture of prioritizing giving back in the business world, many of these organizations are growing incredibly fast. That means better paid leaders and executives, many of whom are looking to buy homes and move up, or may be relocating to new areas.
4. Video Game Designers: Video game designers held down the second best job market in 2015, according to CNN Money’s list. They are highly paid, and highly in demand. In fact, some design studios are being bought up for billions of dollars. So whether they went from high school to $100k a year or dropped out of college to sell their video game design studio, there is no question these designers are ready to buy and rent.
5. Software Architects: The only career to top video game design, according to CNN, is software architecture, with an average salary of more than $124,000.
6. Freelancers: There has been a massive shift to remote working since 2008. It can take a while to achieve a consistent income, but those who started a while ago are starting to see returns. Many freelancers are now passing milestones, and can be among the best qualified homebuyers. Many are afraid they won’t qualify due to few loans being advertised for the self-employed. Those that can help them bridge this gap could find a windfall of great buyers for their properties.
7. Startup Entrepreneurs: Startup entrepreneurs are rolling in the billions. They might not have a lot of stability on their records, but many are flush with cash. They are often willing to splurge on the right housing that will help them build their personal brand and businesses. Can you help them?
8. Fund Managers: Big banks and telecom firms may have been shedding employees, but hedge funds and private equity funds are doing very well. They have dominated a huge slice of the U.S. property market, have rolled out new loan conduits, and are even working on getting billions from the government for ‘affordable’ housing projects. The managers of these funds are well compensated. and they aren’t afraid to go big when it comes to their housing either.
9. Real Estate Professionals & Business Owners: Real estate has probably been the strongest and fastest growing industry in the country over the last few years. That means small business owners, title reps, appraisers, mortgage brokers, loan officers, and others are all looking to upgrade their housing and to take advantage of the current market.
10. Real Estate Investors: Real estate investors are making a lot of money in today’s market. They want new, larger homes to live in, vacation properties, and more investment property inventory. Don’t neglect them.
11. Foreign Investors: Foreign buyers and real estate investors still make up almost 50% of transactions in markets like Miami, FL. From an outsider’s perspective, American property is still dirt cheap, even at its most expensive. South American buyers, Asian buyers, and Canadians are all looking to increase their U.S. holdings.