Posted on Friday, January 9th, 2015 at 2:05 am
The emerging trends in real estate for the year 2015 has unfolded and is inclusive of survey responses and interviews from several real estate experts such as developers, investors, lenders, property company representatives, consultants and brokers. Check out the trends predicted for 2015.
Changes in Renting and Homeownership:
Although, the millenials will continue to opt for rented apartments and postpone homeownership, affecting the apartment sector for many years to come, several survey interviewees opine that investors need to study how the millenials will change their housing preferences in the 2020s. The report also anticipates that the emerging smaller “Generation Z” will result in industry changes. As the real estate industry prepares itself for the 2020s, it must plan for a country with fewer new consumers, smaller number of workforce entrants and lesser household formation. Another important point noted in the report is that baby boomers (as retirees and workers) will not cease to create impact on investment and development of the real estate industry for the coming two decades.
Emergence of The 18-hour City:
As America continues to urbanize, it becomes the place of origin for many cities that were labeled as nine-to-five. Interviewees say that the concept of being alive round the clock all through the week including weekends, is not restricted to coastal cities alone. Today, downtowns have transformed and is a combination of key ingredients such as retail, housing, walk-to-work and dining. All this has resulted in generation of urban cores, spurring development and investment as well as rise in the quality of lifestyle that can match the roster of cities. More market options are now available for buyers as the 18-hour centers are including elements to rachet up the flow of investment capital.
Job Growth will Gain Prominence:
It is also stated in the report that the forward-looking business enterprises are now realizing that during the time they were worrying about ‘jobless recovery’, the long-term labor market trends kept moving the opposite direction. The highest point for millennial labor force entrants is long gone while retirements are due to accelerate. As a few years pass by, talks will center around labor shortages instead of surpluses. The labor market’s primary rule will become “jobs are chasing people”. Survey respondents have placed job growth at number one in the list containing issues for real estate, with concerns of wage and income growth in second position.
We’ll be back with more on real estate trends to expect in 2015.