According to a study conducted by the Urban Land Institute, the real estate market in 2020 may include several trends. These trends may prevent the declining market from crashing. Even if the real estate market does crash, analysts do not predict a serious recession. Instead, the real estate market may enter a doubtful era witnessing a general slowing down period. As good deals become harder to find, investors may not find suitable investment properties.
Community-Oriented Real Estate Development
Researchers agree that the concept of sharing commercial real estate is here to stay. Green developments continue to make an impact on major cities. Younger investors favoring social collaborations will continue to favor integrated services. Living in the suburbs continues to have a broad appeal to millennials with children. Known as “Hipsturbia,” living in a suburb attracts individuals who want to live where they can breathe fresh air and avoid the hustle and bustle associated with city living.
Suburbs Offer Cleaner Air and New Abodes
Suburban residents have more places where they go for walks and enjoy the surrounding environment. Summit, New Jersey, and New Rochelle, New York, are a couple of examples of desirable suburbs featuring brand new apartment complexes and restaurants. Developers continue to create areas according to a traditional “live, work and play” formula.
Housing for Senior Citizens
Developers studying demographic models understand predictable statistics showing that baby boomers are living longer lives. The next 20 years may witness a rise in millions of people living past the age of 80. Older seniors will require various housing alternatives, including modern apartments and developments built to accommodate their needs.
Technology and a Growing Older Population
Technological advances that include smart home devices continue to attract buyers and renters. Even though the trend may take time to develop, technology is already planting its roots. Real estate investment trends are bound to include technology addressing analyzing properties and making it easier to sell homes, especially within the multifamily sector.
Seniors managing to enter their 80s and 90s are sure to demand residences featuring special services, including concierges, package delivery options and security cameras. Improving public transportation options is another important real estate investment trend to anticipate in 2020.
About The Author
Janine Getler is a real estate attorney and the Principal of Getler, Gomes & Sutton PC, a real estate and construction law firm in New York. She brings over 25 years of professional experience working in law, and is known as a leader in the industry. Follow Janine Getler on Crunchbase to learn more!