{"id":12187,"date":"2018-10-31T15:00:44","date_gmt":"2018-10-31T21:00:44","guid":{"rendered":"https:\/\/www.virtuance.com\/?p=12187"},"modified":"2019-02-14T09:34:39","modified_gmt":"2019-02-14T16:34:39","slug":"real-estate-trends-2019","status":"publish","type":"post","link":"https:\/\/staging.virtuance.com\/member\/blog\/real-estate-trends-2019\/","title":{"rendered":"These are the trends that will dominate real estate in 2019"},"content":{"rendered":"
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By Jim Dalrymple II | Source Inman<\/a><\/h4>\n

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Tremendous opportunities lie ahead for real estate professionals \u2014 but also risks, slowdowns, and potentially difficult transitions.<\/p>\n

That\u2019s according to\u00a0the 2019 Emerging Trends in Real Estate report<\/a>\u00a0released this month by the Urban Land Institute. The report, a joint effort with PwC, is based on interviews and survey responses from thousands of respondents from the real estate industry. It\u2019s a wide-ranging look at the state of the industry, but below are some of the most significant trends to watch out for in 2019 and beyond.<\/p>\n

The market may reach a \u201cplateau,\u201d but it won\u2019t collapse<\/h2>\n

Probably the most significant trend the report identifies is the likely cooling of the market \u2014 a trend that has been\u00a0explored<\/a>\u00a0by\u00a0other<\/a>\u00a0sources\u00a0as well<\/a>. Though most of the people interviewed for the report didn\u2019t think a correction was automatically on the horizon, the prevailing sentiment was that the real estate market is \u201ccoming off a peak\u201d and expectations are reaching a \u201cplateau.\u201d<\/p>\n

This trend is tied to an expected general slowing of economic growth in the US, which \u201cpresents a challenge to real estate markets.\u201d The result may be increased risk around new projects, and an interest among those in the industry to \u201cseek the most productive use\u201d of existing assets.<\/p>\n

Whatever happens, surviving will mean getting creative.\u00a0The report concludes that \u201csuccess will elude those markets remaining passive or stubbornly applying 20th-century approaches\u201d to modern problems.<\/p>\n

\u201cSuccess will emerge from those markets that tackle their problems innovatively,\u201d it adds.<\/p>\n

Affordability is straining the market<\/h2>\n

Unsurprisingly to anyone living in a major city, affordability issues will shape real estate in the near future. The report notes that, nationwide, \u201crising levels of unaffordability are largely a function of underproduction at all price levels except for luxury housing, both ownership and rental.\u201d<\/p>\n

The high cost of housing has far-reaching effects. It is driving homelessness across the US. Half of all renters are paying more than 30 percent of their income on housing. And 12 million people are spending more than 50 percent of their income to keep a roof over their heads.<\/p>\n

To solve this problem the US needs to build\u00a04.6 million additional rental housing units by 2030. That adds up to 325,000 units per year. That\u2019s doable, according to the report, though so far \u201cdeliveries are skewed toward upper-end product.\u201d<\/p>\n

Millennials are interested in the suburbs<\/h2>\n

Headlines have long touted millennials\u2019 tendency to live in urban centers, and that has indeed happened. But today,\u00a0at least some of the more than 80 million people who are now in their 20s and 30s \u201ccould be turning their attention to the suburbs.\u201d<\/p>\n

This is a particularly important trend right now because millennials are currently starting families and settling down \u2014 meaning they could have a huge impact on the housing market<\/a><\/span> and everyone who works in it.<\/p>\n

\u201cThe traditional attractions of the suburbs \u2014 larger homes, good schools and lots of green space \u2014 have not changed,\u201d the report adds.<\/p>\n

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Also in this article:<\/em><\/h3>\n