How key economic and demographic developments are reshaping property management possibilities and difficulties.
We live in a period of tremendous technology innovation and lifestyle revolution, whether we embrace it wholeheartedly or reject it at every step. Whereas earlier generations could depend on comparable work and personal life patterns for decades at a time, we are forced to adjust to big changes happening every few years.
This breakneck speed of change puts a premium on anticipating and preparedness on a never-before-seen scale. For those of us interested in building our professions or companies, staying ahead of the curve has become a prerequisite. The purpose of this article is to discuss trends that are expected to have a substantial impact on real estate property management over the next two decades.
Property Management Is A Thriving And Rapidly Growing Industry
According to the most recent United States Census statistics, the real estate property management Bakersfield business grew at an average rate of 7-8 percent throughout the first decade of current decade. The data depicts a sizable and healthy sector, with over 140,000 active businesses producing approximately $36 billion in sales.
According to practically all experts, the business is likely to continue growing at a rapid pace over the next two decades as America’s metropolitan environment undergoes dramatic alteration.
We will analyze each of these elements in detail in this article and attempt to grasp their primary implications for property managers.
The Effect Of The Baby Boomers
Perhaps the most important and widely discussed demographic issue of the last two decades has been the rapidly approaching and entering retirement age of the baby boomer generation. This generation, which has probably had the most effect on the formation of many modern trends, is poised to have an even greater influence as a result of the money collected.
- A population that would be important on its own merits, this group is defined by a greater level of education than prior generations and preconceived notions of everlasting affluence and entitlement formed during their upbringing in the 1950s. With the assistance of modern medicine and an improved diet and fitness regimen, the baby boomer generation refuses to grow old and continues to push the conventional age boundary via an active home, vacation, and work lifestyle.
- Money Circulates. After decades of productive work, company ownership, and investment, the average baby boomer looks forward to a comfortable and opulent retirement. Numerous things may conspire to make this goal a reality for many. To begin, baby boomers are approaching their prime working years and have solid yearly wages as a result of their higher levels of schooling.
Consider also that the majority of baby boomers acquired their houses at a period when property prices were much lower (in comparison to family income), enabling the majority to pay off their primary residence mortgages early. Additionally, the majority of boomers’ progeny are completing college and starting their own families, substantially cutting spending.
Add to this the reality that this generation is more likely to get windfall inheritances from elderly parents, and you have a formula for a huge and unprecedented level of liquidity over the next two decades. Indeed, it is anticipated that baby boomers would spend between $10 and $30 trillion on a mix of little and high ticket discretionary things during the next two decades.