PwC and Urban Land Institute have released their annual “Emerging Trends in Real Estate” report for 2016, forecasting several interesting real estate trends.
Among the top trends highlighted:
- Smaller firms outpacing larger firms in growth.
In an effort to boost the economy, the traditional focus on big cities/employers is shifting to smaller companies fewer than 50 employees, leading the commercial real estate sector to scramble to meet demands for space to accommodate the shift in paradigm.
- 18-hour cities growing in popularity.
Cities like Austin, San Antonio, Denver and San Diego, are seeing boosts in confidence and investment potential due to their ability to offer the amenities seen in larger urban settings for a more affordable price, appealing to a variety of buyers.
- The suburbs are not dead… but sleeping.
Millennials, slower to taking major life steps than predecessors, aren’t abandoning suburban living, but deferring and seeking more urban suburbs, including transit-oriented, mixed-use properties.
- Alternative housing is on the horizon.
Because the rental industry holds the cards for short-term, single-family housing, future buying patterns are predicted to point to smaller, more affordable options such as micro-housing and co-housing at the forefront as buyers return to the market post-real estate crisis.
- Infrastructure innovations will be essential.
Due to the nation’s failure to address its ailing infrastructure, more focus will be given to creative transportation solutions, such as bus rapid transit and green infrastructure (bicycling/walkability).
- Backyard gardening becomes a major player.
As the trend for fresh, safe, local food skyrockets the reinvention of urban and suburban space for food production will play an increased role.
- Parking lots become passé.
Parking lots are predicted to lose their luster as licenses issued and mileage traveled falls in younger age groups.
Missing out on the latest real estate trends to the detriment of your business? Properties Online can help. Find out more today.