ULI/PWC Emerging Trends in Real Estate 2017
The Dallas/Fort Worth (DFW) metro area is once again near the top of the Emerging Trends in Real Estate® rankings. Dallas has ranked #2 (previously #1) at the top of the list for U.S. Markets to watch on overall real estate prospects. DFW may well be an 18-hour market that is rapidly approaching the level where it is considered as a core primary market. The economy survived the global financial crisis better than most other U.S. markets, and real estate fundamentals continue to avoid the boom/bust behavior that has plagued the market in the past.
The DFW area is perceived as a business-friendly environment that offers an attractive cost of doing business, an adequate and well-educated workforce, and world-class transportation access by air, rail, and road. The labor force continues to be supported by an attractive cost of living that continues to attract in-migration. The economy has continued to diversify and has exposure to growing medical facilities and an expanding technology sector. A number of colleges and universities in the metro area support the education level of the workforce, while coordination with the community college network is used to train workers for positions that do not require a four-year college degree.
Additionally, the area has avoided becoming a victim of its own success, although rising demand is pushing up the price of housing in the market. Once known as exclusively as a suburban market, Dallas is enjoying more growth of infill areas and the inner-ring suburbs. The market is also using smaller lots and higher density to keep housing affordable. The suburbs in Dallas/Fort Worth are accessible, if not exactly walkable. DFW residents value improved access to amenities even if it is by personal vehicle. Adequate and convenient parking is a key element to meeting this need. Read the complete report.
TOP 10 Trends for 2017
1. A kinder gentler real estate cycle?
Real estate fundamentals continue to steadily improve, transaction volume and prices are back to historical high levels. Despite the current length of the real estate market expansion, the amount of new supply remains at low levels. Has the real estate industry learned its lesson? Is this the first of more moderate real estate cycles to come?
Both on the investor side and the user side of the market, optionality—not just one use, not just one user, not just one user profile—is gaining favor as the way to navigate cross-currents of volatile markets.
3. The impact of labor scarcity on construction costs
Workers left the construction industry in the Global Financial Crisis. These workers have been slow to return as the economy has recovered. A shortage of construction workers is slowing down project timelines and pushing up total costs. What can be done to address this problem?
4. Housing affordability
The affordability conversation now includes a distinction between “big-A” and “small-A” affordability. Big-A affordability refers to housing for low-income households, and Small-A affordability recognize that in many markets middle-income households are “housing stressed.”
5. Gaining entry beyond the velvet rope
At a time when a number of markets are struggling with a shortage of affordable housing, opposition to potential solutions are on the rise.
6. The connectedness of cities
Smart cities that take advantage of technological enhancements appear to be attracting more interest from investors as the use of technology by the city and its’ citizens drives economic growth.
7. Transformation through location choice
Business leaders are turning a widespread economic development approach on its head, transforming neighborhoods and cities in the process.
8. Recognizing the role of the small entrepreneurial developer
Nimbleness and local knowledge are not commodities, and several factors suggest that small and midsized developers have an increasingly significant role in the industry.
9. Ready for augmented reality?
Improvements in Augmented Reality (AR), are enhancing the way we look at potential real estate uses. Brokers can use the technology in their business and itis melding the “clicks” experience with the “bricks.”
10. Blockchain for 21st Century real estate
Blockchain is the record-keeping technology functioning as the encrypted register of digital data. It has the potential to be a powerfully disrupting technology for real estate.