Demographic shifts — the impact of retiring Baby Boomers and the rise of the Millennial generation – will likely have the most significant impact on real estate near- and long-term, according to The Counselors of Real Estate®, which today released its official CRE® 2015-16 Top Ten Issues Affecting Real Estate, a list it compiles annually. Demographic shifts rose to the top of this year’s list because of the sheer numbers of people and transactions involved in the evolving needs of both groups in coming years, and the far-reaching effect these will have on real estate across all sectors.
The announcement was made by Noah D. Shlaes, CRE, 2015 chair of The Counselors of Real Estate — the invitation-only professional association for the industry’s leading real estate advisors — during the opening address at the National Association of Real Estate Editors (NAREE) conference in Miami. Mr. Shlaes is senior managing director, Global Corporate Services, Newmark Grubb Knight Frank.
Many of the issues on this year’s list have strong interrelationships and affect multiple property sectors. Excess capital supply – funds largely flowing into U.S. real estate purchases from foreign institutional and private investors, and rising interest rates – which greatly impact activity in both the commercial and residential financing sectors, were ranked second and third on the list.
“This list reflects a higher degree of economic uncertainty than in years past,” Mr. Shlaes said. “Anticipation of rising interest rates, continued currency devaluation, and excess capital flowing into the United States are all on the minds of our membership. Combine this with a growing wage gap and major changes in demographics, and we’ve got a lot to think about this year.”
The Counselors of Real Estate organization is known for thought leadership, extraordinary professional reach (more than 50 real estate specialties are represented by its member experts) and objective identification of the issues and trends most likely to impact real estate now and in the future.
