Real estate trends for 2016 are positive. And in my opinion, number 10 is the best trend for you!
The top 10 real estate trends of special interest to keep your eye on this year are:
- People Prefer 18-Hour Cities Over 24-Hour Cities
18-hour cities such as Nashville, San Antonio, Portland, Austin and Raleigh-Durham are “the place to live” for:
- Being hip, cool or trendy
- Having a lower cost of living
- How easy it is to stay connected to the city from a far distance
- Being affordable
- Parents of Millennials Will Move to the Suburbs
Baby Boomers, or the Gen-Y generation, expect that in five years they will live in single-family detached homes in the suburbs. Wikipedia defines this type of home as a single-detached dwelling, single-family residence (SFR) or separate house. It is a free-standing residential building defined in opposition to a multi-family residential dwelling. Gen-Y will look for homes in suburbs with transportation options to connect them to all that big cities offer. Suburbs that connect Baby Boomers to urban center activities will continue to grow in popularity.
- Office Space Will Keep Shrinking
Available office space is decreasing while rent is increasing. This combination will change the average square footage for office workers. An average 253 square feet in 2000 is predicted to shrink to 138 square feet by 2020.
- People Will Experiment with New Housing Options
Homeownership decreased from 70 percent before the Great Recession to 63.5 percent in the spring of 2015 for all age groups. This drop in homeownership has stirred up a demand for rental housing and microhousing.
- Parking Lots Will Change Into Better Pieces of Real Estate
The way people get around is changing. Many are choosing not to own a car and are trending toward ride-sharing (carpooling). This trend is eliminating the need for parking lots. City developers and officials are investigating how to put parking lots to better use.
- More Are Investing in Infrastructure
Buildings, roads and power supplies needed for operation or enterprise in America have been crumbling for years. This has been in the news for a while now. Since the need for new mass transit, better roads and highways and improved aircraft and rail transport facilities has not been met yet, interest in new infrastructure funding, public-private partnerships and real estate investment trusts (REITs) is growing.
Urban farms and rooftop gardens are growing in number. There’s one called Brooklyn Grange here in New York, large urban farm operations in Detroit, and a vertical farm in Newark, New Jersey will be completed soon.
- The Need for Niche Lenders is Increasing
The need for lenders to lend to specialized corners of the market is increasing this year. Many developers turn to larger banks to lend them money for bigger projects that require more lead-time and more capital. But larger banks are constrained by recent regulations allowing smaller banks and community lenders to fill the gaps.
- S. Real Estate Capital Isn’t Slowing Down This Year
The increased volume of real estate capital for 2016 is expected to be equal to or greater than it was in 2015. The real estate landscape will change because real estate capital isn’t slowing down this year.
- Human Touch Is Just As Important As Ever
In spite of the reliance on computers and technology, the good old-fashioned human touch is just as important as ever. People still need and desire intuition and authenticity of real estate professionals’ personal understanding of the market.
Are you interested in and following the real estate trends for 2016? I have over 30 years of experience to help buyers find new housing options, available lenders and more. Call Charles D’Alessandro, your Brooklyn real estate agent with Fillmore Real Estate at (718) 253-9600 ext. 206 or email, [email protected] today. With a personal understanding of the market here in Brooklyn, I’ll help you find just what you’re looking for.