With an ever-fluctuating and ever-connected economy, change is constant. Enter what we call the economic ripple effect: where leaders must understand both the global landscape of their industries and those tangentially related. We’ve broken down what you need to know.
Why keep a pulse on other industries?
They are all woven together and are interdependent, so one shift can have a ripple effect. For example, education and finance are two that we see impacting real estate in substantial ways. As students graduate from college, they’re left with hefty education loans, shackled to financial institutions. As the economy improves and consumers become more confident and inclined to purchase a home, financial institutions find themselves more invested in the real estate industry.
How has the real estate industry responded?
We’ve seen the rise of the renter and a redistribution of desirable locations while millennials get finances on track to eventually purchase. Simultaneously, with the improving economy, investors are back – both institutional and personal – as there is significant opportunity for those in a position to enter the market in this capacity. These factors combined have caused a resurgence of brokerages bolstering their property management offerings, as opposed to focusing solely on purchases and sales.
What does this mean for leaders?
The brokerages – and businesses in general – who will become most successful are those that identify all potential audiences and revenue streams, staying agile enough to capitalize on all of them as they evolve, effectively recession-proofing themselves.
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