Wednesday, November 25, 2015

By John Voket PricewaterhouseCoopers and the Urban Land Institute recently released their annual "Emerging Trends in Real Estate" report for 2016 in mid-October. So in the next two segments I will unpack some of the top report trends as well as predictions for the Top 10 Real Estate 'Markets to Watch' in 2016.

According to the report, some of the top trends affecting real estate and home ownership in the coming year are:

• 18-hour cities 2.0 - The real estate industry is confident in the potential investment returns in 18-hour markets – or markets where businesses, restaurants, and other services operate virtually around the clock.
• A housing option for everyone - Economic and demographic factors influence the housing market as it deals with providing housing desired by the baby boom generation, aging millennials, a population making an urban/suburban choice, and finding a way to provide affordable housing to support a vibrant workforce. Developing better housing for everyone is passing from “nice to do” to “must do,” and that will shape housing trends.
• Infrastructure: Network it! Brand it! With urban population growth, cities are looking to prioritize maintenance and tackle critical needs in water supply and distribution, public education, aviation, vehicle and pedestrian traffic, and rail safety.
• Food is getting bigger and closer - There are many cities where neighborhood land is cheap or older buildings sit idle, and where median incomes are low and the need for fresh food is high. What is trending is the idea that urban land is the most precious and flexible of resources.

The report also identifies the top markets ranked by survey respondents and their outlook for each market. For the coming year, the top two of five markets are:

• Dallas/Fort Worth – Impressive employment growth is the story behind this area’s rise to the top of this year’s survey (it ranked No. 5 last year), which is supported by a business-friendly environment along with an attractive cost of doing business and cost of living.
• Austin – Fueled by another year of diverse job creation, Austin remains an attractive place to live for all generations. One concern from surveyed participants is that the market is growing faster than the local infrastructure.

Check our next segment for more on these 'Emerging Trends.'

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