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Top Real Estate Trends for 2017

Posted by lynnoconnellrealestate_ntlepx on December 7, 2016
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Despite any speculation of economic uncertainty the real estate market has been performing very well this year. The recent Brexit debacle as well as the United States presidential election have made future predictions difficult to identify. Aside from this activity, the U.S. has consistently proven to be solid for investing based on the activity that has been transpiring. The Urban Land Institute’s annual Emerging Trends in Real Estate Report was recently shared and has a more favorable outlook compared to other areas in the world.

Below is a list of the subjects that analysts from both PriceWaterhouseCoopers and the Urban Land Institute state that will help shape the real estate market in the upcoming years.

A gentler real estate market
Having recovered from recent economic downturn we have now entered into a calm from the storm. GDP is at a steady 2% per year where the Federal Reserve will not likely want to increase interest rates too much. Financing can still be more difficult for construction which has pointed to signs of a potential decrease.

Flexibility of Make Up
Developers are strategically building their developments to be multi-use for increased flexibility. As one investor says “Jobs are no longer careers, and millennials are not yet looking for the commitment of owning a home. They are footloose in the job market, and footloose as to roots in the community.”

Transformation of Neighborhood
Particularly in select urban locations, the “live/work/play” idea has been popular as it ties into the community. Developments in downtown areas are aiding the economy by providing growth opportunities in underdeveloped neighborhoods.

The entrepreneur developer
Urban Land Institute officials state that it is a prime time for growth for these entrepreneur developers. As they don’t have the profit expectations of the larger firms, these companies might have the opportunity to penetrate underdeveloped areas as they can sometimes be more flexible.

Labor
Retirement and a limited number of project managers has caused for a shortage of laborers. Strong demand and shortage of supply have led to increased costs which has caused for many developers to build high end product to recapture their expenses.

Affordability
Housing markets across the U.S. for middle-income homeowners are becoming challenging. Prices of homes are increasing faster than incomes while homebuilders are not providing any mid-priced options. Some cities are contemplating zoning policies as well as rent control initiatives to help address these issues.

Barriers of entry
The report suggests “exclusionary forces are equally alive in suburbs and cities.” This cycle begins in cities and now has expanded out into the suburbs. Requests are increasing for things like walkability, public transit as well as density. In particular, inclusivity rather than exclusivity is outweighing as a selling point.

Tech savvy cities
Technology is playing an important part in the popularity of cities. Energy efficiency, building operations and technology offered like networked transportation and online parking availability all are highly sought after. The final result can make cities be more attractive to investors and residents while offering more jobs at the same time.