With just a few more weeks left in 2019, we are looking ahead to 2020 and what it will bring the real estate industry. In the annual Emerging Trends report from the Urban Land Institute, we get a sense that we’re in for a soft landing, not a sudden crash. While economic and political uncertainty has made things feel a little more stressful, the overall consensus from the authors is that things are not nearly as bad as they might seem.
The Urban Land Institute and PricewaterhouseCoopers researchers personally interviewed 750 industry members and surveyed 1,450 more to create this report. In a recent article from Curbed, they write that “there may be less sudden moves, but that doesn’t mean some of the trends emerging this year won’t become breakout investments in the near future.”
From increased co-working spaces to senior housing to Millenials taking over the housing market, there are a lot of trends to keep an eye on in 2020. Here are 10 trends to watch in the new year:
The potential, and pull, of principled investment
Millennials, and younger generations, are increasingly factoring social good into their investment decisions, which the report labels ESG (environmental, social, and governance). What does this mean for real estate? Well, projects that can lay claim to being more community-oriented, or have a bottom line beyond just profit, have the potential to become more popular investment vehicles over time, and attract more of this community-focused capital.