Now in its 39th year, Emerging Trends In Real Estate 2018 has some interesting highlights. This report which is compiled from extensive interviews with Real Estate industry experts in 78 different markets in the country, brings focus to our industry in this unique snapshot in time, which this year proves again that things are a lot more hot, than not, most everywhere. The listed top hot cities in 2018 nationwide are, in order: Seattle, Austin, Salt Lake City, Raleigh/Durham, Dallas/Ft.Worth, Fort Lauderdale, Los Angeles, San Jose, Nashville, Boston making top ten areas in 2018. The information is broken down into areas of interest per market: local property / market outlook, demographics and livability, cost, readiness of technology, connectivity, and ease of doing business.
They discussed our youngest workers and new contributors to society and “The Gen Z Effect” on retail and work space. It appears what is old, is again becoming new. To be successful, brick and mortar stores will need to transform to meet the needs of the “gadgeteria” mindset of this generation, with omni-channel, social-media-worthy shopping experiences.
Since I wanted clarity:
1. denoting or relating to a type of retail that integrates the different methods of shopping available to consumers (e.g., online, in a physical store, or by phone).
2. “80 percent of sales for omnichannel retailers happen in the offline world”
Workplace design will also be affected. Millennials were all about collaborative, open workspaces. For gen Z it appears more structure is desired, suggesting a return to offices – with doors – and more personal office space is the go-forward trend.
For our area here in the great Maine Sebago Lakes Region, much of what is working in the hottest real estate markets, proves true here as well. Multifamily property remains a strong investment due to the need for more affordable rental units for the 150+ million millennials and gen Z’s, with many families wanting to also care longer for our growing aging populations, especially in secondary markets. Since baby boomers are remaining in their homes longer, the younger generations are facing a real housing shortage. Just by looking at new popular TV programming, we are seeing the opportunity for homebuilders willing to scale product to the younger generations preferences, which include smaller and more energy-efficient homes, townhouses, condos, and “affordable” starter homes where “mobile” has a new meaning in 2018. Rehab of existing spaces is very strong. As recently as twenty years ago, there was no concept of the emerging new “Tiny House” trend.
More next week.
Make it a great week!