20 Apr Impact
As the housing crisis taught many of us, the real estate industry does not exist on an island by itself. The success and failures of other industries can affect the real estate market in a myriad of ways. Everything from where we buy to how we buy can change depending on the trends of adjacent markets. Let’s take a look at how a few other industries are impacting real estate.
The film industry has long seen its greatest successes on the coasts. Major cities like New York and Los Angeles have benefited from being the prime destination for creatives and entertainers. In recent years, Atlanta has made its mark as a new Hollywood hub with a laundry list of feature films and television shows shooting in the area and major studios popping up left and right. The latter is one of the many ways Atlanta’s commercial and residential real estate markets benefit from the film industry’s success. An increased need in the number of production facilities means large office spaces, warehouses, and abandoned stadiums can all be revitalized and transformed into film studios. With more studios also comes a growing number of industry professionals who need housing. Those who operate the production facilities themselves will likely take advantage of nearby housing thus contributing to an economic boost for the local real estate market.
Consumers aren’t just buying household items online anymore, they’re also using the Internet to buy the houses themselves. Prospective residents do copious amounts of research online before ever visiting a property and they often know everything about a home before they arrive for a walk-through. Digital marketing, social media, online reviews, and the quality of your website or ad can determine the probability of offline conversion. Consumers need to be able to find relevant information about your property, high quality images, and positive social conversations online before they are willing to connect with you personally. This is a marked difference from the days of curb-side-appeal and in-person networking. Now, if realtors want to make the sale, they have to ensure their online presence will appeal to the modern homebuyer.
As you can see, the real estate market can change a lot based on the trajectory of other industries. The growth or demise of one industry can affect where and when people choose to buy homes or workspaces and changing trends in another industry can determine how prospects make purchase decisions. No matter the industry itself, there’s a chance that its fluctuations can make an impact on the world of real estate.