An annual gathering of real estate agents has updated its list of the challenges facing the market.
They include housing affordability, disruptive technology, and rising interest rates; according to CRE members of the US National Association of Realtors which concluded its 2018 conference this week.
The commercial real estate experts pool their research, analysis, and information to develop their Top Ten Issues Affecting Real Estate list. Although focused on the US market, many of the challenges also apply to Canadian real estate.
The list is divided into current issues – affecting real estate over the next 12 months – and long-term issues over the next 10 years.
- Interest Rates & the Economy
- Politics & Political Uncertainty
- Housing Affordability
- Generational Change/Demographics
- E-commerce & Logistics
"When it comes politics, CRE tries to illuminate rather than advocate," said Kelly. "However, we think it is obvious that the dysfunctional state of our political discourse and our unwillingness to compromise on issues stand in the way of problem-solving – problems like the ones on this list."
- Disruptive Technology
- Natural Disasters & Climate Change
- Energy & Water
"It is widely known and documented that as infrastructure deteriorates, so do the local neighborhoods and communities," said panelist Julie Melander, Vice President-Portfolio Management at Carter Validus. "The reverse is also true; in regions where infrastructure is invested in we see a growth in population, an increase in business investment and a rise in property values."