Real estate continues to wind along a slower-than normal recovery track, behind a recuperating U.S. economy, determined by ongoing world economic distress.
US Real Estate Market Trends 2016
Most developers and investors who seek quick wins will remain frustrated as return expectations continue to ratchet down to more realistic but relatively attractive levels providing income plus some appreciation. In fact, real estate assets will almost certainly continue to outperform fixed-income investments in the ultralow-interest-rate environment induced by the Federal Reserve, as well as offer a familiar refuge from ever-seesawing stock markets.
Overall metro-area market ratings display significant improvement from 2015. Investors still show strong interest in top properties in primary coastal markets, as San Francisco, New York City, Boston, and Washington, D.C., remain in the Top ten. In general, the economy should generate enough momentum to push greater leasing activity and increase occupancies.
Emerging Trends respondents continue to favour apartments over all other sectors, although pricing has probably peaked and rent growth will subside in markets with an increase in multifamily development activity.