Emerging Real Estate Investment options in 2025

[Dennis Bragg]

The world of real estate is brimming with opportunities for 2025. With markets adapting to changing economic conditions, now is the time to explore innovative investment strategies. Let me walk you through some exciting trends that I’ve observed firsthand, which could shape the future of your portfolio.

1. Build-to-Rent (BTR): A Steady Income Stream

With homeownership becoming less attainable for many, build-to-rent properties are in high demand. These communities cater to renters who value suburban living but can't or won't buy a home. For instance, a friend of mine transitioned into the BTR market in Austin, Texas, after noticing consistent rental growth. Their first project...a neighborhood of single-family homes...yielded a steady 8% ROI in its first year.

2. Secondary Markets Are Thriving
Omaha and San Antonio are two examples of secondary markets where the cost of entry is still reasonable. A colleague recently closed on a 12-unit property in San Antonio and shared that a 6.8% cap rate, combined with lower property taxes, made it a no-brainer. Cities like these offer untapped potential without the intense competition found in larger metros.

3. Fractional Ownership: Small Steps, Big Impact

New platforms now enable fractional ownership of high-end properties. From what I’ve seen in CNBC reports, this strategy appeals to investors who want to diversify without committing large sums upfront. Think luxury vacation rentals in high-demand areas like San Diego.

4. STRs in Non-Traditional Markets
Short-term rentals in areas near universities or event venues are gaining popularity. A contact of mine has been thriving with STR investments in suburban Chicago, targeting guests visiting for conferences. According to him, the secret lies in market research and meticulous property management.

5. Mixed-Use Developments with Green Designs
Eco-conscious development is on the rise. Mixed-use properties that integrate residential units, co-working spaces, and retail areas with sustainable design elements are particularly appealing. I recently toured a property in Phoenix where solar power and water-saving features cut operational costs by nearly 20%.

6. Adaptive Reuse: Turning Old into Gold
Repurposing commercial spaces into residential units is another exciting trend. In San Antonio, I worked alongside an investor who converted an abandoned office building into modern apartments, leveraging tax incentives for adaptive reuse.

The Right Moment to Act
Economic shifts in 2025 present a golden opportunity for innovative investors. From what I’ve seen in Bloomberg, diversification and forward-thinking strategies can make all the difference this year.

What strategies are you exploring for 2025? Let’s collaborate and share insights...sometimes a simple conversation can spark your next big move.

[Jay Hinrichs]

Quote from @Chris Seveney:

Quote from @Dennis Bragg:

The world of real estate is brimming with opportunities for 2025. With markets adapting to changing economic conditions, now is the time to explore innovative investment strategies. Let me walk you through some exciting trends that I’ve observed firsthand, which could shape the future of your portfolio.

1. Build-to-Rent (BTR): A Steady Income Stream

With homeownership becoming less attainable for many, build-to-rent properties are in high demand. These communities cater to renters who value suburban living but can't or won't buy a home. For instance, a friend of mine transitioned into the BTR market in Austin, Texas, after noticing consistent rental growth. Their first project...a neighborhood of single-family homes...yielded a steady 8% ROI in its first year.

2. Secondary Markets Are Thriving
Omaha and San Antonio are two examples of secondary markets where the cost of entry is still reasonable. A colleague recently closed on a 12-unit property in San Antonio and shared that a 6.8% cap rate, combined with lower property taxes, made it a no-brainer. Cities like these offer untapped potential without the intense competition found in larger metros.

3. Fractional Ownership: Small Steps, Big Impact

New platforms now enable fractional ownership of high-end properties. From what I’ve seen in CNBC reports, this strategy appeals to investors who want to diversify without committing large sums upfront. Think luxury vacation rentals in high-demand areas like San Diego.

4. STRs in Non-Traditional Markets
Short-term rentals in areas near universities or event venues are gaining popularity. A contact of mine has been thriving with STR investments in suburban Chicago, targeting guests visiting for conferences. According to him, the secret lies in market research and meticulous property management.

5. Mixed-Use Developments with Green Designs
Eco-conscious development is on the rise. Mixed-use properties that integrate residential units, co-working spaces, and retail areas with sustainable design elements are particularly appealing. I recently toured a property in Phoenix where solar power and water-saving features cut operational costs by nearly 20%.

6. Adaptive Reuse: Turning Old into Gold
Repurposing commercial spaces into residential units is another exciting trend. In San Antonio, I worked alongside an investor who converted an abandoned office building into modern apartments, leveraging tax incentives for adaptive reuse.

The Right Moment to Act
Economic shifts in 2025 present a golden opportunity for innovative investors. From what I’ve seen in Bloomberg, diversification and forward-thinking strategies can make all the difference this year.

What strategies are you exploring for 2025? Let’s collaborate and share insights...sometimes a simple conversation can spark your next big move.

 I see 3-5 as a fad.

Fractional ownership - way to much overhead for these to be profitable. think "timeshare".

STR in non traditional markets - running a STR is a business and real estate, boils down to location location location - who would want to go to a conference and stay in a STR vs. the hotel where the conference is at, most businesses pay for this I do not see why.

Mixed use with green - this has been going on for years- it will continue but it is also more expensive to build - which means higher costs to use.

Not trying to be debbie downer, I have seen these attempted to be done in the past and they really have not been successful.

I do really like the BTR model though as I continue to see that as a very good option in the future.

Yup half of these ideas are OLD NEWS  I never equate Texas and low tax's LOL also my concern with build to rent subdivisions is not the rent or the first 3 to 5 years but the exit in 7 to 10 years which is average hold time for investors..  If one is a lifer then I like the BTR but if one is going to exit in less than a decade I think the exit might not be what folks were counting on.