2015 marked a shaky year spawned from volatility across the markets, and despite serious swings in both directions, the S&P ended the year nearly flat. According to a recent article on CNBC, financial experts anticipate more volatility throughout 2016 and the wealthiest investors are turning toward non-traditional assets like real estate to protect their portfolios.
“Property services company Colliers International estimates that up to $400 billion of institutional funding could flow into real estate over the next three to five years, as investors look to diversify holdings and stabilize returns.”
What This Means for Real Estate Investors
Make no mistake, 2016 marks an incredibly important time to own real estate. There is a massive rental boom that will continue to grow throughout the year as 1.25 million new households form. Additionally, homeownership trends are projected to drop by 10% this year alone and vacancy rates are projected to hit 30 year lows. Real estate investors can take advantage of this market, which is primed for growth while avoiding the volatility of the stock market.