The 36th annual Emerging Trends in Real Estate report by PricewaterhouseCoopers and the Urban Land Institute points to 10 changes in the industry that are gaining momentum. Read more by clicking here.
The 18-hour city
A phenomenon that began 20 years ago, the “city that never sleeps” applies to more than just the Big Apple nowadays. In fact, the study, based on interviews with 1,400 industry experts, notes the phrase “has become part of the common lexicon of the real estate industry and of city planners.”
The growing millennial/boomer influence
While the millennial generation is larger than the baby boomer cohort, its influence has not overshadowed the older group.
The labor shortage
Robust job growth is key to filling office buildings and enabling consumers to buy homes, rent hotel rooms and keep shopping centers in business. Those activities, in turn, create the need to build office buildings, homes, hotels and stores.
The expansion of technology
The continued adoption of technology across industries is diminishing the need for office and retail space as businesses consider the Internet both a boon to the bottom line and a competitor.
The influx of foreign capital
As investing their money at home becomes riskier, foreign investors are sinking their capital into “durable, proven” U.S. real estate, the study notes.
The changing climate for investment managers
Stiff competition in the retail, office and hospitality real estate investment trust industries is sharpening efforts for efficiency, effectiveness and economy, the report states.
The demand for investment products
The industry will aggressively push real estate as part of retirement investment portfolios, the study predicts. “Who can doubt that new products directed specifically to this capital source will be emerging over the coming years?” the authors ask.
The crumbling infrastructure
“Real estate,” one industry expert told the researchers, “depends upon ease of commutation.” But more and more, the roads and bridges that might allow for an easy commute are doing the opposite.
The healthy housing market
“A healthy story for housing is shaping up,” notes the report. Its authors anticipate moderate—but stable—price increases.
The dark side
Some of the experts who participated in the survey expressed concern that another real estate bubble could form—and burst—if the industry forgets the pre-recession lessons.