Real Estate News: 2016 Will Be the Year of 18 Hours Cities
Real estate market is thriving but then the real estate properties in some major cities have become too pricey for buyers, renters and even investors.
As the prices go higher in real estate investments especially for the "24-hour traditional 'gateway cities' like New York, Hong Kong, London, etc.," the common fear that investors have in mind is the risk to reward value, as reported by RealtyBizNews. It is obvious that when the property becomes too expensive the reward value might diminish.
However, the good news is home buyers are now showing more interests in 18 hours cities. As noted, "These are cities that have limited resources between the hours of midnight and six in the morning (airports stop, no ground transportation, and few restaurants as examples)."
Why is this so? RealtyBizNews explains that for first time home owners, the strongest market comes from the bracket of Millennials. Now, this market is active in "the 24 hour cities where they can find anything they want at any hour of the day."
But then as reported, this trend is already coined to "18 hour cities." As explained in Realty Times, this trend is the combination of "the best of 24-hour and 9-5 cities." This means that there's revitalization in downtown areas as far as entrepreneurial services are concerned.
All the same, RealtyBizNews states that PwC Emerging Trends in Real Estate© has come up with a study that reveals that the Millennial market is "trendy." The advanced study shows that "while this generation currently has a strong attraction to the urban market, they will eventually marry, have children, and move to the suburbs. The question isn't "if" but rather "when" they will transition to the suburbs." Although, at this point this market is living in 18 hour cities. Statistics also reveals that there are more than 80 million Millennials.
Construction Dive also reports the PricewaterhouseCoopers and the Urban Land Institute's annual "Emerging Trends in Real Estate" report for 2016.
The said report reveals that "18 hour cities" comes no. 1 in the 10 real estate trends being predicted in 2016. ULI and PwC said that there will be success in this trend. "These markets that are becoming increasingly "hip" include Austin, San Diego, San Antonio and Denver." And prediction states that this secondary market will get stronger next year.
What is your take in the said prediction of "18 hour cities?" Tell us what you think.