2016 Real Estate Trends Thus Far- By Richard Maize
We are only one month into the year and already some new real estate trends are beginning to emerge. According to the 2016 Emerging Trends in Real Estate, released earlier this week by the Urban Land Institute, the next year has a particularly good outlook. Here’s a quick list of the variables that will play a factor in this year’s good fortune.
- More “low-key” cities are beginning to take off in the real estate world-
Cities such as Austin, Portland, San Antonie and Nashville are really taking off. The report suggests that, in addition to having up and coming, trendy bar scenes they also benefit from an overall lower cost of living.
- Microhousing. The Great Recession has led to an increase in demand for rental housing, which has become increasingly less affordable, in turn the general public has become more open to the idea of microhousing- small but modern, versatile apartments.
- Increased investment in city infrastructures and public transit. For years everyone has complained about the lack of decent public transportation- which makes it harder for people to live in the more affordable suburbs and commute to work. As of late, there has been much more emphasis put on reforming public transportation systems, especially in LA, where new light rail stations are in the works.
- Millennials are becoming parents. The millennial generation has put off marriage and having children longer than any other generation in history, which has led to them staying in large cities much longer than their parents or grandparents. With the millennials becoming older we are starting to see a pattern of them moving to more suburban areas to raise their children. Which is great news for real estate markets in suburban areas of New York, Los Angeles, and San Francisco. This, however doesn’t mean that urban markets will see a decline anytime soon, as generation Y is also getting older and starting to move into large cities as well.
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