Bucking a mass of negative global economic trends and soaring into 2016, the real estate industry is still on the upswing after years of positive performance. In fact, according to the latest report on real estate trends by the Urban Land Institute, the outlook of the next 12 months is looking pretty darn good.
What real estate trends should you be on the lookout for this year?
- Second-tier cities continuing their rise in popularity.
18-hour cities like Austin, San Antonio, Nashville, Portland, Raleigh-Durham, and more offer increased availability, lower cost of living, and ease of access to main metropolises.
- The ‘rents moving to the ‘burbs.
Millennial parents, long painted as urbanesque, actually want homes in the ‘burbs, with good neighborhoods and schools like their parents and grandparents. In fact, because this generation has put parenthood on delay, a quickly-fueled suburban boom in upcoming years is expected.
- Changes in housing options and ideas.
The affordability factor, which has led to homeownership dropping to pre-depression era rates, is leading to increased rental housing demands, concepts like micro-housing, and creative home loan options allowing multiple family members and generations to share in mortgage obligations.
- Urban agriculture grows.
An increasing number of homeowners are becoming interested in urban farms, rooftop, and vertical gardening as food safety and health issues continue to fuel the push for better food, sparking a rise in municipalities allowing residents to raise backyard livestock.
- A rising need for niche lenders.
Larger institutions constrained by recent regulations are making way for smaller banks and community lenders.
- A change of landscape in the commercial sector.
Job growth has spurred a need for office space, however the latest real estate trends point toward open office plans allowing for co-working and less square feet per worker, prompting the need for the redevelopment of space.
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