2016 Real Estate Trends
PricewaterhouseCoopers in conjunction with the Urban Land Institute recently released their report on 2016 trends in real estate. This report uses surveys and interviews to predict trends in the real estate market of the United States for the upcoming year. Investors, brokers, real estate agents, consultants, developers, property companies, and many others in the industry should take note of these trends, as several interesting trends are predicted in 2016. Here are a few of them to note, in no particular order.
Suburbia is not dead
Most real estate professionals do not believe that suburban living is a thing of the past. It has been long feared that millennials would leave behind suburban areas for trendier areas. However, it is predicted that people in this generation will begin to marry and build families, pumping fresh air back into many suburban areas across the nation. In fact, in 40 of the country’s top metropolitan cities, more than 80 percent of jobs are not within the city-center core. This gives more optimism to realtors work in suburban areas.
Rethinking housing options
Both baby boomers and millennials have shown increased interest in homes that are smaller and more affordable. However, the generations in between have driven real estate professionals and builders to relying on the large profits within the luxury home market. This means that there is at least a partially untapped affordable housing spectrum. The real estate market may see new creative trends in giving baby boomers more of what they want in a dwelling, such as microhousing and cohousing.
Just as the home real estate market is changing, so is office and business real estate. Companies are expecting continued growth and increased employment numbers over the next couple of years. Companies are now charged with redesigning their traditional office spaces to attract and keep talent within their own pool. They also need to adapt to changes within the workplace, such as coworking spaces. Many employers are also considering how they want employees to interact with each other, such as mingling more, and designing their spaces around those goals.
Many cities residents are finding that their budgets and desires for fresh food are clashing. This has caused a rise in the use of urban lands for producing food. In fact, the report mentions an operation in New York City that produces over 300 tons of vegetables in three different hydroponic operations.
As suburbs may be re-invented in the next decade, creative uses for inner city land may also be. Professionals in the real estate industry should be prepared for the use of city space for fresh food production.
Bringing back the humans
It is also expected that the next several years will see the return of human thinking as opposed to technological advances within real estate offices. While big data and the application of technology has brought a lot into the real estate sector, nothing takes the place of a human who can extract data, analyze it, and make good decisions with it. The trouble started when people lacked the wise judgement to see the coming consequences and the will power to work for something more than short term profits.
Paying attention to trends in real estate helps those in the profession to take previous information and combine it with new information in order to make good decisions individually, and as a whole. To be successful in this industry, one must be open to change and be willing to meet the needs of the customer and of the real estate industry itself. It is only those real estate agents that are able to be successful in this ever-changing business.