The Urban Land Institute or ULI just released its Emerging Trends Report for 2017. These are the biggest trends to hit the real estate market and promise to impact the way agents do business in the next twelve months. Some of these trends have been forming for a while and will become more pronounced in the years to come, while others are relatively new to the real estate space. Regardless of your role in the real estate industry, keeping up with these trends will ensure you’re always bringing your A-game.
Niche markets and niche neighborhoods
More buyers are looking for areas where they can live, work and play to minimize time spent commuting or traveling in a car. Emphasis is being placed on neighborhoods close to urban transit hubs, such as train or metro stations, as well as other commuting options. Neighborhoods and communities that have emphasized this trend —by making local improvements and additions— will continue to see strong growth in their communities.
Labor shortage will drive up construction costs
There are far fewer skilled workers in construction in 2016 than there were ten years ago. This is due to a number of economic reasons and social changes that have reduced the number of skilled laborers. What this means is that the costs for the existing workforce is going up with no end in sight. There are more men and women going into construction work to meet the high demand, but it takes time to gain the skills to build top quality projects.
Optional or multi-use spaces
Many offices are choosing an open office design or a design that features modular functions that can be added or subtracted as the business grows. These spaces have moved far away from the traditional office spaces where everyone had their own closed space. These spaces may be used for multiple functions within a single business operation, or multiple businesses may share a space that can be adjusted or modified to meet a new purpose. Look for this trend to continue with the rising prices of office space.
Mixed use development with retail, public and private
Many developers are designing urban spaces that can meet a variety of needs for a variety of different lifestyles. Many of these condo and apartment projects feature all the latest amenities, such as a pool, clubhouse and weight room, along with a restaurant and a branch post office or small retail. Not only does the cross-purpose use improve the value of the property, but the residents of these developments seem to stay longer and sell less, which drives up the market value.
The Urban Land Institute tracks changes in the way cities use land and resources, as well as trends and factors that affect the use of land in cities. There are a number of new and emerging trends that continue to shape the real estate landscape for 2017 according to the report. Knowing about these trends will help the wise real estate investor capitalize on future investments.