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Key Takeaways from ULI’s 2018 Trends in Real Estate Report

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The Urban Land Institute (ULI) just released its 2018 Emerging Trends in Real Estate report. Together with researchers from PricewaterhouseCoopers, ULI compiled interviews from over 800 stakeholders and surveys from 1,600 industry professionals to come up with the report. Here are a few of the report's takeaways:

Mid-priced single-family homes will take the lead. Industry professionals agreed that demand for starter homes for young adults was growing. These homes include transit-oriented developments and urban row homes. However, a number of economic factors such as price, land acquisition costs, and location will make scalable solutions elusive.
Productivity-focused commercial real estate will find its place. The tightening labor market has put pressure on workers to perform while innovation trends in all sectors of the economy put an emphasis on workplace creativity. Developers focusing on designs that foster efficiency, shared workspaces, flexibility, and green design will reap big rewards.
Secondary markets to leap ahead. Markets such as Seattle and Miami are among the top markets to watch in 2018, beating primary markets such as Los Angeles, San Francisco, Manhattan, and Boston. Gen Z and baby boomers to emerge.
Gen Z, the generation born after 1995, is just leaving college loaded with debt and eager for urban living. The baby boomer generation is retiring and is in the market for affordable housing. Up to 37 percent of baby boomers have less than $50,000 in savings, thanks in part to loan burdens and the Great Recession. Many of them will be struggling to find affordable housing fit for living out their golden years. Others will need help selling their large homes and downsizing to smaller properties.