The Emerging Trends in Real Estate report makes projections in both commercial and residential real estate for the next year. A highly respected report, it surveys more than 1,400 people in the real estate market, from investors to property managers.
Here, we take a look at what the report details.
18 Hour Cities
Continued urbanization is one of the most significant issues that will affect the real estate industry. Many cities across the country are mimicking the walkability and transit-oriented development that New York, Washington DC, and San Francisco have established successfully as “24-hour cities.” Smaller cities are copying this model, but on a more affordable scale, thus being coined 18-hour cities.
While last year this was an emerging phenomenon, in 2016, it is becoming an investment opportunity. Attracting potential workers due to the availability of affordable services and employers due to the lower cost of doing business. The report states that this means that 18-hour cities are being considered viable investment alternatives to the big six.
The suburbs are thriving, but in a new way to the past, by using components of the urban environment. Investors like urban investments more than the suburbs, so using urban components is making them much more attractive to big investors. There is growing evidence that supports the idea that millennials will eventually make their way to outer neighborhoods and suburbs. In these areas, they are still looking for good public transport and the amenities that they enjoy in the urban areas.
Housing Options for All
The US is moving away from traditional homeownership with changing demographics and household preferences meaning that the single-family housing market is improving. This means that there are a number of new opportunities in housing options, with the housing market seeing aging baby boomers who are looking for homes to age in, and first-time buyers looking for affordable options in higher-cost urban options.
Food is Important
There is a general trend towards those wanting to eat fresh and nutritious foods, but who live in urban areas. One way to meet this need is through urban farming, utilizing rooftops and obsolete industrial properties, making it an excellent investment opportunity.
Investors are considering expanding to a wider market set and alternative investment choices because global uncertainty continues to enhance the attractiveness of hard assets in stable markets. There is a lot of domestic and global capital that continues to flow into the US real estate market.