After the unforeseen volatility of 2020, the team at CrowdStreet decided to conduct a survey to understand how individual investors are looking at real estate investing in 2021. With 1,240, respondents, we believe this is the largest ever survey of individual real estate investors. While the macroeconomic recovery timeline is still uncertain, investors told us they are enthusiastic about making online investments in real estate in 2021.
Survey Highlights:
Investor appetite for real estate in 2021
- 96% of surveyed investors plan to add commercial real estate (CRE) to their portfolios this year, beating out both stocks and bonds.
- Investors reported they’re planning to temper their exposure to the stock market–only 31% plan to invest more in stocks and only 7% plan to invest more in bonds. Of those surveyed, 48% actually plan to invest less in bonds.
- Among investors who have never invested in real estate, 95% intend to make their first CRE investment in 2021.
What do investors value in a deal?
- Diversifying their portfolio and preserving wealth or capital were the two main reasons respondents were looking to add CRE to their portfolios.
- Investors reported they also value sponsor experience over targeted IRR when evaluating a potential opportunity.
What kinds of deals are investors looking for?
- The Southeast was the clear region winner in real estate investing, beating the Midwest and Mountain Region by 13 percentage points.
- The effects of the pandemic showed through in investors’ opinions on their preferred asset classes, with multifamily and industrial topping the most-favored asset classes
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All information provided through the education center is for educational purposes only and does not constitute investment, legal, or tax advice, or an offer to buy or sell any security or investment product. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. The articles in this education center are written by employees of CrowdStreet and have been prepared solely for informational purposes. Any videos presented are for educational purposes only and do not constitute investment advice. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside of Crowdstreet. All examples are hypothetical and for illustrative purposes only.
