Real estate development trends in the US move rather quickly, thanks to a large population and dynamic economy. While 2020’s political and economic affairs may affect real estate predictions, there are some invariable market rises and demographic shifts that we can expect to impact investment opportunities this year. Here are some of the key real estate development trends in 2020 that are likely to have a sizable impact on investors and developers.
2020 Real Estate Development Trends
Community-Oriented Development in the Suburbs
Household formations are expected to surge through 2025, as millennials are having children and growing their families. Suburbs attract a large majority of young families and are anticipated to draw in a large percentage of the wave of new households, according to recent real estate trends.
Millennial families prefer the suburbs, rather than the city, for a quieter, kid-friendly lifestyle. However, millennials don’t want to move 30 miles beyond city limits and expect urban developments to be available in their neighborhoods. In other words, millennial families want the best of both worlds: rural community living and the perks of an urban lifestyle. Real estate developers can expect an increasing demand for mixed-use retail centers and community-oriented development in suburban areas.
Healthcare and Senior Living Real Estate Growth
A number of demographic trends are reaching new hights, including life expectancy and the number of baby boomers reaching retirement age. Research by Harvard University suggests that the 80-and-over population alone will double between 2015 and 2035, from 12 million to 24 million. This massive growth will shift the age distribution of the US population, and require the development of more healthcare and senior living facilities.
Sustainable Construction Projects
Millennials and younger generations are more environmentally conscious and are taking green and sustainable principles into account when it comes to investments. With an increasing number of wealthy millennials investing in sustainable companies, commercial property trends suggest that more sustainable projects are on the rise, and looking for real estate. These green projects include sustainable multifamily construction and energy efficiency projects, sustainable water management and environmentally friendly technology companies.
Revival for Secondary Cities
Secondary cities in the US offer prime real estate investment opportunities right now, as they host many advanced industries that are thriving, from biomedicine to technology. Many of these secondary cities, including Charlotte and Nashville, are showing major population growth, as people are moving from major US metropolises to smaller markets quickly. Commercial real estate insights have also indicated that these second-tier cities offer a trending market for single-family rentals, specifically.