Emerging Trends in Real Estate
ULI and PWC's Annual Report Was Released on October 22nd
The Urban Land Institute (ULI) and Price Waterhouse Coopers (PwC) surveyed or interviewed over 1,400 industry experts to gain an understanding of the emerging trends in real estate. The top ten trends can be viewed in chapter one of the Emerging Trends in Real Estate Report.
According to the report, and considering Kane County's context, below are a few of the major trends that will affect the planning landscape of the future.
Demographic Shifts Are Impacting the Housing Market
Together the Baby Boomers and the Millennials--160 million people in the two cohorts--are transforming the real estate market. Millennials, who hold $1 trillion in student loan debt, are renting more, starting families later and enjoying less income mobility. Baby Boomers are trending away from traditional golf-course style retirements, they are working later into life and they are choosing to age in place or near their children. These demographic shifts are influencing housing markets and are triggering changes in our urban environments.
Technology Continues to Affect Real Estate
Technology is driving changes in space use, site strategy and demand levels at an accelerated pace. Increasingly, retailers are looking to the internet both as a source of competition and as a way to bring consumers into their stores. Further, the internet is spurring the rise of the sharing economy. This is most evident in the hotel and taxi industries, but it is also gaining traction with more and more people sharing office space. The sharing of office space, or "Co-working" has been increasing in popularity as a growing number of people are self-employed or are able to work off-site. Industry experts have been observing the impact of technology on all sectors, and this is making it difficult to know how much space will be needed for office, warehouse and retail. However, demand forecasts are explored in-depth in the report.
Crumbling U.S Infrastructure Will Increase its Effect on Real Estate
Real estate experts are well aware that the foundation of our commerce--our infrastructure--is eroding around us. It's not just bridges, roads and the like. Since 2009, spending on educational buildings and health care facilities in both the public and private sectors is down by one-third. An industry expert stated, "Infill is the key to opportunity in strong markets, but it is a challenge when transportation and utility infrastructure is old and seriously underfunded."
To read more about the emerging trends in real estate,