The 2016 Real Estate Market Sizzles
The significant force behind the real estate market growing is globalization, urbanization, technology and demography.
A staggering 46-percent of Millennials are looking for cities, with 36-percent of Gen Xers considering cities and 30-percent of Baby Boomers. Suburbs are beginning to grow, as 24-percent of Millennials will consider this area, 25-percent of Gen Xers and 30% of Baby Boomers. Rural and small towns are also seeing a tremendous boost. Up to 30-percent of Millennials enjoy rural and small town living, 38-percent of Gen Xers and 39-percent of Baby Boomers.
Middle-income multifamily housing is a solid upcoming market that could potentially help grow employment centers and provide affordable housing. When planning for parking for these types of units, the rule of thumb is that they generally require fewer parking spaces, with numbers estimated at one slot per 1,000 square feet of multifamily space, especially if the development is near mass transit.
American cities are embracing urban, amenitized, hip, walkable and transit-oriented developments in large cities, which appeals to developers and homebuyers alike.
There are several U.S. home markets to watch in 2016, including:
• Dallas/Fort Worth – With a huge boost in employment, job growth is supporting a housing increase in this area. Single-family homes are among the strongest markets in this area.
• Austin – Attractive for a span of generations, Austin’s property types are above average.
• Charlotte – Population growth and steady employment helps make this a strong 2016-housing sector.
• Seattle – Featuring a diverse industry base, Seattle is anticipating more job growth, which leads to more housing needs.
• Atlanta – Strong growth and the low cost of business makes this city attractive for investors.
• Denver – A strong economy and a favorable market has given Denver a step-up in the single-family housing market.
• Nashville – Nashville offers an excellent suburban location.
• San Francisco – Nearly back to peak levels, San Francisco features a market that always seems to bounce back.
• Portland, Oregon – Commercial property is higher than residential property, but there is room for growth in the public and private investment sectors.
• Los Angeles – Real estate fundamentals and pricing are high and multifamily properties are hot.
If bank loans are causing problems or requiring extensive closing dates, buyers can opt for direct lenders that can close properties in as fast as 10 days. Working with a hard moneylender can be easier when obtaining a real estate development loan or commercial property loan.