05 Aug How The Recession Is Shaping The Future Of Real Estate
Many experts believe that the developing demographic trends we are currently seeing will drastically affect the demand for future rental properties. After reading a report on James Chung’s webinar its is hard to argue otherwise.
In his presentation, Chung reviewed several factors that will directly shape the market. Included is the expansive growth of the US population. In Chung’s words, the positive growth of a fully industrialized country is very positive for the real estate market outlook. The point is that market demand and its marketing will completely rely on this growth. As preferences shift so does the market.
While it’s a challenging task, it is a positive one. According to Chung, the economic climate that the boomers and Gen-Y face will directly shape the majority of demand for tomorrow’s market. This makes complete sense when you consider the shear numbers of these two generations. . Whatever economic hardships these generations face now will determine what builders will be focusing on in the future.
According to Chung, the direction we are heading leads to an increased demand in rental property. Reduced incomes will cause this increased demand for rental property.
The change in consumer attitudes towards health change is driving more than just healthcare but also where people want to live. Consumers will want sustainable and healthy homes. We all understand that people want sustainable homes for energy savings but we also need to remember that they will want them for health reasons.
On a positive note, Chung assured participants of the webinar that the change in the market will be a positive one as long as developers recognize the changes and differences. In his words, “As bad as the recession was, it has corrected the market and has presented a window for reinvention.”