While micro-units are coming soon to New York City, developers in Washington state and Texas are already betting on smaller units. These modern efficiencies appeal to those who value location and often don't own a car.
While the baby boomers and generation Y are a big piece of the puzzle, neither generation is monolithic, said panelists at the ULI Spring Meeting. Appealing to all generations may be the safest path for residential and retail developers.
Significant improvement can be expected in both the commercial and residential real estate sectors this year and through 2015, according to ULI's semiannual forecast. Respondents expect transaction volume in commercial real estate to rise from $290 billion last year to $310 billion this year, $340 billion in 2014, and $360 billion in 2015.
While members of generation Y—Americans born between 1978 and 1994—have largely been set back by the economic downturn just as they entered the workforce, one report says a significant number are starting to spend big.
A bipartisan housing commission is calling for the complete elimination of Fannie Mae and Freddie Mac, plus a more targeted Federal Housing Administration that returns to its roots. The panel further says it is time to recognize the country’s changing demographics by placing a stronger federal emphasis on rental housing.