Whatshould you watch for this year? The Urban Land Institute recentlyreleased its â€śEmergingTrends in Real Estateâ€ťreport, covering the U.S. and Canada, for the coming year. Thereport covers some of the top trends expected to impact real estatein the short and mid-term.
Hereare a few trends ULI says you should have on your radar screen forthis year:
1. Risingmortgage rates. Therising interest rate is expected to be the mantra this year. â€śTheunderlying question is how the generation whose entire businesscareer has been shaped by a low-interest-rate environment willrespond to the upward movement in the price of money,â€ť ULIâ€™sreport notes. â€śWill higher rates alter behaviors, to what degree,and at what threshold?â€ť ULI says these will be the main questionsthat emerge this year.
2.Droughtimpact. Thewestern part of the U.S. â€” particularly California â€” is facinga historic drought but the impact will likely be felt throughoutthe U.S. For example, â€śas irrigation has become more problematicand costly, so too have food prices for crops ranging from almondsand artichokes to pistachios and raisins,â€ť the report notes. Thatwill bring about a decline in farmland prices. Also, the reportnotes that semiconductor plants require large amounts of water, asdo the snow-making machines at ski resorts. â€śCities whoseeconomic energy has been driven by population increases mustconfront limits on growth that are defined by water availabilityand cost,â€ť the report notes. â€śAlthough a strong El NiĂ±o forthe winter of 2015â€“2016 is forecast to bring much-needed rain,the water deficit west of the 100th Meridian is a factor that realestate should watch closely in the years ahead.â€ť3.
3.GenerationX in leadership. GenXers â€“ those born between 1965 and 1980 â€“ are due to takecharge in real estate.â€śThey are in a good position, in a way, asthey are the ones whom the boomers should be grooming formanagement succession,â€ť according to ULI. â€śBut they came of agein the aftermath of the savings-and-loan crisis, in dire times forreal estate. Few came into the business during the early 1990s, andeven fewer have the benefit of real estate graduate education.Watch for the implications for leadership in the industry goingforward.â€ť
4.The Fair Housing Act and â€śthe affordability crisis.â€ť TheU.S. Supreme Court says that local communities are able to takelegal action to address any disparities in housing, even those thatare unintentional. Also, the U.S. Department of Housing and UrbanDevelopment is now requiring local communities to â€śaffirmativelyfurtherâ€ť equal housing opportunity. Communities could risk losingfederal housing funds if they donâ€™t comply. â€śThis could alterwhere affordable housing is built, and where households in need ofsuch housing may move,â€ť the report notes. Whatâ€™s more, ULIpredicts that given the recent U.S. Supreme Court and HUD rulings, aheated debate on multifamily development will likely ensue thisyear.
Blogsubmitted by: Cyndi Cobb of The Real Estate Market Place â€“Servicingthe Greater Fort Hood and surrounding areas which includes:Killeen,Harker Heights, Temple, Belton, Copperas Cove, Lampasas,Kempner, andNolanville. Feel free to call if you have any questions regardingCentral Texas Real Estate.
Author:Cyndi Cobb Phone: 512-564-0381 Dated: February 1st 2016 Views: 589 About Cyndi: ...
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