While it may be hard to duplicate the growth rates of the last 5 years, real estate investment is expected to remain strong in all regions of the country, according to a new report released by the Urban Land Institute.
“Long-term economic growth is probably going to be slower,” remarked Andrew Warren, one of the report’s authors, in a press release from the UBI.
Warren added that the potential is there for “two percent growth over the foreseeable future—five to ten years.”
Surveying more than 1,500 realtors, developers, bank lenders, and investment managers, among others in the industry, the report also revealed that well over 75 percent of respondents categorized business prospects for 2020 as good to excellent, while just over 20 percent thought those prospects would be fair.
In 2011, during the depths of the Great Recession, under 40 percent of respondents categorized prospects as good to excellent, while around 60 percent said things were fair.
The report, Emerging Trends in Real Estate 2020 done in conjunction with the accounting firm of PricewaterhouseCoopers, additionally notes that new investment has been particularly strong in Texas, North Carolina, Tennessee, and Massachusetts.
But new suburban markets for the new home-buying Millennial Generation have also appeared everywhere from New Jersey to Illinois.
Undergirding both the current and future real estate trends, said Warren, is the availability of capital, the signal ingredient that will “smooth the road as we go toward more sustainable growth going forward.”
By Garry Boulard
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