Affordability, Disruption & Rising Interest Rates Lead Top Ten Issues Facing Real Estate
Housing affordability, disruptive technology and rising interest rates were just some of the issues the Counselors of Real Estate named most likely to affect the real estate industry during a session titled “Update: The Top Ten Impacts on Real Estate 2018-2019” at NAR’s 2018 REALTORS® Conference & Expo.
Each year CRE members pool their research, analysis and information to develop a Top Ten Issues Affecting Real Estate list and the substantiation that validates it. This list identifies the most pressing trends and challenges that will impact the housing and commercial real estate market now and in the years to come.
“Real estate touches every American, from every part of the country and every walk of life,” said panelist Hugh Kelly, of Hugh F. Kelly Real Estate Economics. “The concerns facing the real estate industry are our common concerns.”
CRE divided the list into two groups: issues the organization believes the industry needs to be thinking about in the coming year and issues that will be important over the next 10 years.
Here are the two lists:
1. Interest Rates & the Economy
2. Politics & Political Uncertainty
3. Housing Affordability
4. Generational Change/Demographics
5. E-commerce & Logistics
“When it comes to 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.”
2. Disruptive Technology
3. Natural Disasters & Climate Change
5. 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.”
The National Association of Realtors® is America’s largest trade association, representing 1.3 million members involved in all aspects of the residential and commercial real estate industries.