Global uncertainty and political polarization are the top threats facing the housing industry in 207-2018. Despite this unsettling environment, opportunity remains embedded in every issue on the list.
Top 10 issues:
1. Political polarization and uncertainty. Uncertainty about changes to trade, travel and immigration policy threatens cross-boarder investing, hospitality properties, retail and manufacturing supply chains among other effects. Rising interest rates and retail inflation will make middle-class home ownership that much more difficult. Long-term issues can be much more severe as polarization prevents long-term fixes to issues such as infrastructure, affordable housing, local and state pension liabilities and education.
2. The technology boom, unprecedented wave of commercial real estate technology innovations is expected to change the way real estate is bought, sold and managed.
3. Generation disruption. Boomers and millennials of where they live, work and play have a great impact on our markets.
4. Retail disruption. Transfer of goods from inventory to consumer will have a impact on brick and mortar.
5. Housing disparity. lack of inventory to supply the demand for affordable housing areas.
6. Infrastructure investment. Steemed from the need of retail and goods in the retail disruption place. It is recognized the long-term benefits to strengthening this sector with airports, bridges and roads.
7. Threats to the middle class. Income has been stagnate for these areas. $54k + was the one-time average and has yet to reach that.
8. Emerging role of healthcare in real estate. Building designs and structure is being demanded that they inhibit healthier environments.
9. Immigration. Labor shortages in home building are a growing concern in a critical time when inventory is needed to supply the demand.
10. Climate change. The implications of rising sea levels and related to real estate positioning to explode due to dramatic in the volume and accessibility of the consequences on sea rise. Sea are expected to raise from 6.6-8.6 by 2100. Miami, New York, Tampa and Boston are projected to have the greatest impacts.