Capitalizing on real estate growth as a new business owner
Here’s what Colorado business professionals should know
The pandemic has proven that real estate is one of the most secure sectors for business growth, both in Colorado and many outside markets.
Housing is booming. High demand has driven sales. Meanwhile, low housing inventory across the nation has driven up prices and values across the industry.
For new and prospective Colorado business owners, hitching your wagon to this meteoric market can mean a lucrative source of revenue. The real estate market is a great place to be right now—unless, in some cases, you’re looking to buy a home of your own—so why not capitalize on its success?
Making the most of real estate growth, however, will require an understanding of the market and a business model designed to withstand change. Here’s what Colorado business professionals should know.
Why Real Estate is a Great Sector for Driving Business Growth
Any market in which demand far exceeds supply is a powerful market for growth. Real estate across the nation is facing a shortage, with 29 states reporting an undersupply. With housing inventory in the Denver area falling as much as 48% from 2019, the need for homes is becoming more pressing than ever. This need is driving growth, and it means amble business opportunities for savvy business owners.
With interest rates at record lows, buyers are expected to continue engaging in the market despite rising home values. This trend is predicted to continue throughout 2021, even if interest rates rise somewhat. The result is a market that is seeping value, with the ability to lift up other sectors of the economy.
Businesses that surround or cater to this high-value, always-necessary aspect of daily life stand to build their own revenues as a result. Here are just a few ways business owners can tie their efforts to this pillar of the economy:
Offer construction services.
- Consider contracting or handyman work.
- Have a trained real estate agent on staff.
- Become a property manager or landlord.
- Expand services into real estate photography or cleaning.
These are but a few of the necessary services surrounding the real estate market, all of which are experiencing increased demand even amid pandemic concerns. Nothing seems to be standing in the way of Colorado’s bustling real estate market. Capitalizing on this market growth, however, will require agile business policies that can grow with rising demand.
Capitalizing on Real Estate Growth
Every business type will bring something different to the real estate market. Finding your niche and capitalizing on housing demand can help catapult your new business into success. The rate of this success and your corresponding revenues, though, will depend on how you structure, market, and assess your business.
Simply put, consider the following three strategies for broader success:
1. Fill in the gaps.
Right now, the real estate market is full of holes in which savvy business owners can turn a profit. Construction firms in Colorado, for instance, have a difficult time finding skilled workers, according to 9 in 10 surveyed professionals. Needs like these represent growth markets in themselves and opportunities for innovative entrepreneurs.
No matter the status of your local real estate market, needs and niches will exist. For example, recent low-interest rates have exploded the market for refinancing and renovating homes. These projects have increased the demand for handymen and contractors. Whatever your current path, starting such a career in construction can help you capitalize on real estate growth.
Explore these niches and determine how best to meet the demands of buyers, developers, and investors. With the right business model, you can tie your trajectory to the rise of burgeoning markets like real estate.
2. Make yourself invaluable.
Whatever your decided business model and range of products and services, cementing your place in the lucrative real estate market takes effective marketing. Your clients and customers need to understand the role you play and why you are essential.
This means thorough social media and content campaigns that address the needs and challenges of Colorado developers and home buyers. Clients should feel as if they can turn to you for insightful and fair service, and broad visibility and transparency helps.
For contractors, ensuring competitive pay for your expertise can come down to this visibility. Make clear the value you add for your clients. Be accessible, but require fees for your work on an hourly, per project, or a retainer basis. Clients won’t value your offerings if you don’t.
3. Assess and reassess.
Real estate has demonstrated greater stability than many other sectors of the economy. 2008’s economic downturn revolved around a failing housing market, which is why the industry struggled during the Great Recession. However, most recessions don’t damage the real estate market at all. Housing will never cease to be a need, after all.
At the same time, needs change across communities and industries. Effective business practices maintain their edge through consistent evaluation. No matter your niche, assess and reassess your key performance indicators to better generate insights.
Data analytics are now an important aspect of any business model. Integrate data in your own practices to keep a pulse on the real estate market and adapt accordingly.
Real estate growth in Colorado and other regions across the world is reaching new heights. New business owners can capitalize on this growth with an adaptive and thoughtful business model. Start by finding a fitting niche, then make yourself invaluable to the larger industry.
Since housing will always be in need, businesses that effectively tie themselves to this sector of the economy can mean greater success for Colorado start-ups.