2016 seems to be a promising year for real estate, as a recently released report reveals that the outlook for the next 12 months is good.
According to the 2016 Emerging Trends in Real Estate from the Urban Land Institute, as reported by Curbed, things are looking "rosy" for the real estate market this 2016.
The growing trends in real estate in 2016 show that second tier cities such as Austin, Nashville, Portland, and San Antonio will take the center stage this year. Such cities will takeover prime cities like New York and San Francisco, as more and more people seem to prefer the benefits of living in second tier cities over the high-profile ones.
According to the publication, second tier cities offer lower costs of living with more opportunities for investment. There is also a growing trend among millennial parents moving to the suburbs.
As previously reported on Realty Today, real estate agents became increasingly worried over the fact that the millennials seemed to prefer renting over homeownership. However, 2016 seems to be a promising year, as survey suggests that the millennials are expecting to live in their own homes in five years.
This year may also be the best year for introducing new housing options in the market, as more people are looking for more affordable options. The outlet noted that there has been an increased demand for rental housing and micro housing, which means that real estate agents and sellers must look into ways to adapt to this changing trend.
"Developing improved housing options for everyone, however, is passing from the realm of 'nice to do' to 'must do.' That's going to be shaping the housing trends going forward," the report stated.
The decrease in the number of millennials purchasing their cars and the preference for ride sharing has also made a couple of analysts wonder if parking lots are still viable development opportunities in the future.
