Houston currently offers the most lucrative opportunities for real estate according to a survey conducted by the Urban Land Institute and PwC. Experts further believe that the energy sector will drive financial growth in Houston, which will sustain 2015’s real estate market according to the ULI/PwC report.
Experts assert that the awakening of cities such as Houston is taking place due to the influx of millennials. Such cities currently feature retail, entertainment, and dining options that cater to the younger population beyond normal operating hours.
Emerging trends in the city’s real estate indicate that Houston ranks among the top markets to watch next year. Experts further indicate that the real estate market is likely to remain reasonably robust. If you’re considering real estate investment, check this out.
18-hour City Trend
America’s urbanization has given rise to cities that were historically active from 9-5. The trend is changing and it’s no longer acceptable that only coastal cities can be active around the clock and during weekends.
Downtown transformations have merged the major ingredients of retail offerings, housing, walk-to-work offices, and dining to produce urban cores, driving development, investment, and raising the life quality.
Buyers therefore have additional markets to consider since the 18-hour centers are implementing the necessary elements to increase their investment.
Increased Home Ownership for Millennials
For years, numerous millennials have delayed homeownership in support of renting. However, this is likely to change in 2015 as an increasing number of Gen Ys start families and seek additional stability.
By the end of 2015, experts believe millennial buyers will symbolize the largest group of homeowners, surpassing Generation X. Nevertheless, apartments will maintain their appeal for a while among millennials.
While the millennials represent a larger demographic group than the baby-boom generation, investors must consider how millennials’ housing preferences could change in the subsequent years. Reports also anticipate additional industry changes owing to the emergence of the smaller “Gen Z.”
Baby boomers as retirees and workers are also expected to have a considerable impact on real estate investment and development for another two decades.
Hi-tech Real Estate
No type of real estate is exempt from the exponential growth of technology. Currently, an abundance of technology tools exists in the market to aid the promotion of commercial real estate.
Technology is driving change in locations, space use, and demand levels at an increased pace. It is currently the norm to strategize, anticipate, and respond to emerging technologies before they become mainstream. Overall, the fear about technological disruption has eased and currently viewed as offering new business environments and tools.
Financial firms are no longer driving office demand. Instead, brokers are focusing on the media and technology industries as a major source of competition.
Housing Appears to Be Returning to the Basic Principles
Housing appears to be placing the bubble excesses and the subsequent collapse behind it. It appears real estate is going back to the typical principles of demand and supply. As this happens, confidence in the housing sector is expected to rise next year.
Property Marketing Expenditures to Rise
Expenditures related to property marketing are expected to go up as property owners seek improved outcomes from marketing endeavors. Next year will see property owners investing heavily in marketing with the aim of repositioning second-generation buildings to help improve and maintain their occupancy rates.
For more information on Houston’s real estate trends for 2015, contact Apartment Agents.
Image: Real Estate