The professional association Counselors of Real Estate (CRE) recently issued their annual Top Ten Issues Affecting Real Estate for 2018-2019. In a break with previous years, their new list separates issues by current and long-term concerns. Topping their list of current concerns was “Interest Rates and the Economy” while long term they view “Infrastructure” as a major issue. Indeed…their entire list is worth a strategic look.
“Leading the list of current issues is Interest Rates and The Economy. As interest rates rise, the commercial and residential real estate markets are already experiencing changes – decreasing demand for commercial property, and higher home mortgage rates. Rate increases also limit value appreciation for commercial real estate and make housing less affordable…”
Longer-term, however, Infrastructure – and the lack of serious effort by the U.S. to address its condition and much-needed revitalization – leads the list of broader and emerging issues affecting real estate. Roads, bridges, airports, water and sewer lines, electricity, even public transit…are rapidly deteriorating…”
Top 5 right now:
- Interest Rates and The Economy
- Politics and Political Uncertainty
- Housing affordability
- Generational Change and Demographic
- E-commerce, and Logistics
Top 5 going forward:
- Infrastructure
- Disruptive Technology
- Natural Disasters and Climate Change
- Immigration
- Energy and Water