According to the Urban Land Institute (ULI), after recovering from a rough year in the real estate market, the developing trends were highlighted in a real estate report concocted at a Chicago ULI meeting last month, according to CBS News.
Beginning to move into the market are Millennials
Generation Y, or the millennial generation, are beginning to move into the real estate market, but not as homeowners quite yet. Cities that have seen much growth in real estate are Austin, Seattle, Portland and Minneapolis.
Unlike their Baby-boomer parents, Generation Y is not becoming homeowners as early as they were at their age.
Real estate market recover will be led by second ranked cities
Garnering interest from developers, investors and builders are finding the market intriguing in cities such as Dallas and Portland.
In 2011 cities like Washington D.C. and New York had many potential developers and investors, but now cities such as Austin, Boston, Dallas, Seattle, San Jose, San Francisco, Portland, Miami, Houston and Orange County are now sought out by these foresaid people, according to the ULI.
Job growth still centers on real estate recovery
A big piece on the recovery of real estate relies on the pace of job growth, as well as financial status. The job and wage growth is still moving at a slower pace.
“Many cities in the bay Area and in Texas have seen strong housing recoveries based on the strength of their economy,” said Stephen Blank to CBS News, who is the senior resident fellow for finance at ULI. “So places with low unemployment can expect better recoveries next year, while places still haunted by economic issues won’t.”
The decrease of multi-family apartment buildings
There is an increased response from consumers that were once homeowners that turned into renters. Experts from the ULI feel that the market for multi-family apartments will falter. Some believe that there was too much of a supply available.
There still could be a rise of condo development
Developers aren’t wanting to possibility of failure in constructing new condo buildings. In the single family market, developers and builders are taking the strategy of building an apartment rental buildings and changing them to condominiums within 12-16 months according to the ULI.
Inventory is returning
The decreased number of inventory will assist property prices. Sellers are looking for higher benefits than they have because of the inventory is depleted and the demand is high.
Suburban areas aren’t receiving the attention that they once did earlier on. That being said projects are being more focused on being built close to amenities and nearby public transportation is located.