In this article, I will share the ten best real estate niches that might suit you the best. As you know, in order to make good money in a particular neighborhood, you must have a chosen niche you like and admire the most.
Although you can focus on more than one type of property, like first-time home buyers, luxury homes, commercial real estate, and others. But marketing yourself as an expert in a particular niche will hold your success, and you will get more leads year after year.
Look, it’s a long-time game, and you can not do everything as people do not like general people. They like experts. No one will give their hard-earned money to an amateur who deals in almost all niches. People like professionals, and you must become one by choosing a good niche that you like and has the potential in your area to make you money.
Ten Best Real Estate Niches
But before you choose any of these ten real estate niches, answer these questions to clarify your inner desire, what exactly do you want, or what might suit you the best?
- What can you get excited about most of the time?
- What do you find the most interesting in this business?
- What are the empty niches that are available in that area?
- What do you dislike the most?
- What is the neighborhood that you want to work with?
- What exists in your area that no one is talking about?
I know it can be difficult to answer these questions but do ask yourself and find out your inner wants and needs. So that you make the best decision while choosing a good real estate niche. So here are those then best real estate niches that you should target.
Table of Contents
1. First Time Home Buyers
The first-time home buyer niche is the most popular, the most money maker, and the most competitive one. Our population is growing, and more and more people are moving to the cities, creating an opportunity for people who deal in homes.
All of them need an agent who can help them buy their dream house in the city in a good neighborhood. The demand for homes will be there, and you can be one that supplies it.
2. Rental Properties
It is a big niche that covers single-family homes, multi-family homes, room for rent, and other types of residential homes. Rental properties are even more popular as the average price of homes in those cities is skyrocketing, which makes buying a dream home unaffordable for many people creating an opportunity for the rental market.
According to the National Multifamily Housing Council, over 43 million households live on rent, with more than 40 percent living in apartments. It is one of the best real estate niches and an opportunity for you if you can handle the renal process.
3. House Flipping Niche
The demand for house flipping is booming nowadays because of social media, and all those real estate TV shows showcase house flipping with new and new renovation ideas. This niche can generate steady work for you if you help buyers locate undervalued homes and sell them consistently.
This niche has specific needs. Most buyers will want to pay as little as possible in fees and commissions and sell at the highest price. So they can invest the total profit into another property and make more money. It’s up to you how you handle it.
4. Luxury Homes
If you want to make a good amount of money every year, get into luxury real estate. Selling high-class homes is very attractive, but it is more difficult than other niches as people will become too choosy when selecting a house tour. You will need the most patience, resource, and expertise to crack a deal in this niche.
No matter how the market condition is, luxury homes will always sell. There will be up and down in sales, but on average, you will have work as we have seen in the pandemic. During that time, the luxury housing market was the first to recover, and then other niches. So if you can handle those high-class people, it’s a good choice.
5. Collage Student Homes
It’s the most profitable and overlooked niche by most people as they think it can not make money. But the demand will always be there for rental units near collage and universities. It’s best suited for agents who live or work near a university.
Most students will approach you to find a room where they can spend their precious four years and study quietly. Parents are very choosy about student homes, but the work is good, and the money is also good if you want to be a part of it.
6. Raw Land Investing
Raw land or vacant land is a unique niche that offers many opportunities for agents, especially in rural areas. You can work with people looking to sell their land and developers interested in purchasing those land for a good plot in the nearest market. Land deals are the best and the most money maker if you deliver to the developer what they exactly want.
The best part is that the land is affected by any market crash normally. When the market crash for any reason, people will sell their land to pay for something creating an opportunity for you to make. It means the money will flow to your pocket in both a down market and an up market.
7. Commercial Properties
Commercial properties have the most professional real estate agents as far as I have seen. But it is more complex than residential properties and involves large transactions. To handle all those big transactions, you need to develop professional skills so that the deal can happen without any errors.
Plus, commercial properties offer much higher earning potential than residential properties. Agents in commercial real estate can achieve huge success if they focus on the customer first.
8. Foreclosure Homes
Foreclosure means homeowners who bought a house by borrowing money from the bank but could not pay back the money. That is why the bank took over the home and will sell it in an action or personally to an interested buyer to recover their money.
One of the best ways to get started in this niche is to work with a good company that has experience buying and selling foreclosed houses. It is a competitive niche, but once you understand the hidden value of those foreclosed homes, you will make more money.
9. Vacation Homes
Vacation homes come along with luxury homes, but for professionals, it’s a different and one of the best real estate niches to make money. But you must be comfortable with it, and most people are not. You must understand the requirements of each client before you show them those homes. It can be challenging.
You can go for Lakefront homes, Mountain homes, and Oceanfront homes and take advantage of the various loopholes it offers like they have different property tax, zoning, and development rules.
10. Building Communities
The last niche is the communities. You will manage the whole community, which consists of over 20 tenants or over 200. And for buying and selling, you are their agent. It means the whole community is on your hand, either someone to rent it, buy it, or sell it.
Although it comes with many challenges like keeping the homeowner association happy, residents happy, and the building owner happy. It’s not easy, but it can give you good money.
So these are the best real estate niches to get started, but you must know what might suit you the best, and you will enjoy doing it. Not every niche is for you. It depends on where you live, your neighborhood, and the competition in the market. Choose the one that is good and offers manageable competitors. So that you can do the business for a long time.