In addition to economic and political changes, there are natural factors that may have a small impact on real estate growth. The effect of natural factors on real estate depends mostly on the type of natural factor that is involved. Real estate is ordinarily a fairly stable market, not usually affected by other events in the financial areas, but these factors may affect real estate growth at certain points in the economy.
Over the past few decades real estate growth has continued to escalate, especially because of natural factors. What kind of natural factors can affect real estate growth? Many different types of natural factors can affect the real estate market. Some of the many factors include:
- Temperature Extremes
- Wild Fires
Real estate Greensborough states that other naturally occurring conditions that may affect real estate growth include many things that we cannot define within the scope of our knowledge. For example, real estate prices may simply change for no reason that is obvious, but these natural factors will cause other changes within the economy. Real estate has always increased in value as have the rice of rental units. We don’t know why it happens all the time. It is sometimes related to the strength of the US dollar against other monetary units or because of conditions occurring throughout the world.
In order to define the effects of natural factors on real estate, one must know the economic conditions throughout the world since some of those economic conditions may affect the real estate growth rate in the U.S. That doesn’t mean if the United Kingdom faces a crash in their stock market it will affect the real estate prices in the United States, but if other factors come into play such as weakening of the dollar against the pound and/or other currencies, it could indeed have an effect on real estate growth.
Unfortunately, during those times when the real estate growth rates slows in terms of real estate prices, the rental market continues to climb at an exorbitant rate. In many states apartment rentals have increased over 400% within the past 30 years while during the same period a house that once cost $20,0000 now costs over $100,000. Certainly no natural factors have affected the growth of real estate in those markets yet they have escalated in price.
Role of Real estate in your future growth
Investment opportunities have always been a major part of the real estate industry, and with the cost of living what it is in the 21st century, many people cannot afford to buy a home, so they rely on rental property to house their families. Businesses are also renting more properties so that they can write off the payments instead of just claiming depreciation on buildings they own. In addition, renting a building, whether it’s a home or a commercial property, requires less cash than buying the same property. That allows the company to invest that cash into other investment vehicles that will provide other sources of income for the company to pass along to employees and stockholders.