Casting a wide net in real estate can be a smart strategy. However, in a tight housing market, going broad means stiff competition with everyone vying for the same customers. Niche markets, on the other hand, may not be as competitive, especially if you’re targeting a niche in your specific region.
While some niches, such as luxury real estate, draw in a fair amount of competition, lesser-known niches might not. Below are twenty smaller real estate niches that can result in major profit if approached correctly.
Property niches
Work-from-home properties: With more employers shifting to remote and hybrid work environments, choosing a home with the right office space is becoming a major priority for certain homebuyers. This niche encompasses a diverse population of hopeful homeowners looking for everything from single-family homes to unique, custom properties.
Green housing: From fully sustainable homes to off-the-grid living, more people today want to make environmentally conscious purchases and that includes homebuying. Green buyers often want sustainable construction practices. green home features and easy access to public transportation.
Equestrian properties: Finding a property with room for a horse (or multiple horses) can be tricky, Not to mention the codes, regulations and zoning restrictions that come along with owning one of these properties. With 1.6 million households in the U.S. owning horses, this niche might be big depending on your location.
Waterfront properties: Be it a house with an ocean view or a lake-front bungalow, waterfront properties always have some demand. These homebuyers often have a little more money to spend and are willing to make a substantial investment in the waterfront home of their dreams.
Smart homes: In a world turning more towards tech each day, modern homes are following suit. Smart homes can include everything from digital thermostats and smoke detector devices to app-controlled kitchen appliances and air conditioners.
Golf course properties: Looking out onto the green every day is a big motivator for some buyers. Golf course properties usually lean toward the higher end of real estate prices so this niche can easily attract big spenders.
Fixer-uppers: An emerging market, especially amongst younger homebuyers, fixer-uppers can be a great option for buyers looking to spend less. This niche includes many first-time homebuyers who are often willing to compromise in order to realize their goal of homeownership.
Age-restricted neighborhoods: These neighborhoods are often reserved for 55+ and are sometimes synonymous with retirement communities. Seniors rely on real estate professionals to navigate through the process and provide insight into different community options.
Historic district housing: Investing in a historic property can be challenging for buyers and sellers alike. Older properties can require expensive maintenance in order to keep structures up to code. While this market is very niche, the right strategy and solid networking can go a long way.
Buyer and seller niches
REO, foreclosure and short sales: Becoming an expert in short sales, foreclosures and real estate-owned (REO) listings can result in a steady flow of business. Working for a brokerage specializing in these properties is often the best way to get your footing.
FSBO: For sale by owner, or FSBO listings, are becoming a popular choice for sellers who want a straightforward process that cuts down on cost. Real estate professionals in this niche need to focus on proving their value to customers while working within the right budget.
Probate: Probate can be a challenging niche that requires strong interpersonal skills and extensive knowledge about probate laws. An expert presence paired with genuine empathy is the best approach to probate real estate.
Multigenerational living: Multigenerational households have increased since the pandemic and with high housing costs, this market will likely stick around for the foreseeable future. College students moving back in with their parents and older parents moving in with their grown children are just some of the situations you’ll encounter in multigenerational housing and each situation requires a different approach.
Empty nesters: After the kids have moved out, couples often find themselves with much more room than they need. Whether it’s the desire to downsize or an interest in moving to a new location, empty nesters are a great group to help on the journey to the next chapter in their lives.
Military families: With half a million active military families relocating each year in the US, there’s no shortage of potential business in this niche. These families have unique living situations, so being well-educated on military family challenges is essential for building a strong reputation.
Foreign-language and international buyers: From international professionals looking to buy while they work in the US to new citizens who’ve yet to master the English language, this niche is super diverse and requires high cultural awareness. Multilingual real estate professionals can be especially successful in helping foreign-language speakers navigate the housing market.
Veterans: Veterans might need extra help when it comes to buying and selling and working with a real estate professional who is knowledgeable about VA benefits and financing can really simplify the process. There are many organizations that help connect veterans with real estate professionals, so building relationships with local veteran resource centers can be key.
Buyers with physical disabilities: This niche requires dedication, education and special consideration for each customer’s specific needs. Real estate professionals in this niche need to look out for things like wheelchair accessibility and other home features that aid customers in their daily lives.
Relocation services: People relocate for work, school, the military, relationships and sometimes just for a change of pace. For the relocation real estate niche, being an expert on your area and the different communities within it is crucial since out-of-towners might not know where to begin in a new town.
Capitalizing on a niche market means making money while connecting customers with their dream properties. Find out which niches work best in your community and begin building a reputation.
