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Michael Kelly
  • Lowcountry, SC
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Future Real Estate Trends

Michael Kelly
  • Lowcountry, SC
Posted Jun 9 2018, 14:41

Below I've outlined several topics I think about when analyzing future trends. Answering these questions helps real estate investors drive the future and buy in to hot trends while they're cheap. 

Where will people be in 5yrs. 10 yrs. 15yrs. 20yrs. ? How will Millennials and Gen Z prioritize aspects of living and define quality of life? Will traditional suburbia change? Will specialized rural communities flourish? Will single family home prices be affected? Are young people really drawn to apt. living and/or renting? Will urban migration reverse course? How will retirees fit in? How will retail space be effectively used? 

Please share your thoughts and other trends you focus on. 

***

The old tradition 

Growing up, my parents owned a decent sized but standard 4 bed, 2.5 bath, two stories with additional finished third floor for storage, ironing and home office. Square design. Close to neighbors. Tiny "yard". All bedrooms were on the second floor, and in close proximity. 

Price to value 

The house appreciated 3x since they bought it early 1990s, but it never seemed worth the price. We live in a coastal region, lackluster schooling system, low crime, but nothing too exciting and certainly crowded area. As the Boomers retire and downsize, I expect a marked influx of supply of this very type of traditional, single family house. But what about demand? 

Boomers' traditional single family homes?

Local examples I've witnessed result in selling the house (and evicting kids / grandkids), because young adults saddled with student loans, wage stagnation and transient employment have do not afford many the option to buy. Even if they could, lifestyles, at least for now, do not make it a competitive option, at least at historical price levels. 

Are things still changing? 

Widespread access to high speed internet, the "gig" economy and online business opportunity have revolutionized work, but is it done? With 5G and expanding wifi options, remote work will become more available than ever. If I could conduct business anywhere, where would it be? 

My ideal living space 

Close to nature. Amongst friends and living in a community with more personal space, diverse economy, access to travel (roads / airports) and strong local culture (food / entertainment / socialization). I'd look for optimistic, less populated areas with work / life balance, basic conveniences and online shopping. Young people and less stress. Clean water and local produce. 

Technology provides alternatives to mainstream lifestyle of 1980s-present 

My vision is different than the historical "urban migration" trends. My ideal living is not close-quarters apt. complex, even with amenities I couldn't afford on my own like pools, gyms and social areas. It's also not suburbia, standard of the Boomer generation. 

New "American Dream" 

Will we see small, rural areas develop contemporary communes, with all the draws and fewer concessions? Modern communities with better balance, access to space, and without sacrificing technologies and connectivity? 

Schools as daycare, online programs as education 

Why not enhance education with online presentations and world class teachers? There are already incredible YouTube courses that are more relatable, more advanced and teach me 10x faster than standard instructors. Lessons are efficient and content is relevant.   

How will retain space be effectively used?

What will happen to retail space? Seen anything promising out there? I could see malls of America transformed into greenhouses, used as urban oasis for congregation. Or maybe event space, urban fitness course, concert venues, testing facilities, food courts, skate parks, breweries, education facilities or start-up incubators. Rental cost per square foot would still decline, but these things are simply not what they use to be and never will be again. 

Thanks!

Michael

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