Niche neighborhoods and economic diversity are driving forces behind the strong showing of this year’s top ten U.S. cities, according to Emerging Trends in Real Estate® 2017, recently released by PwC US and the Urban Land Institute (ULI). Austin, Texas wins “Top City,” thanks to its authentic, niche neighborhoods and depth of economic diversity, from manufacturing to education, health care and technology. Construction labor shortages and the rapid spread of digitization throughout the industry are also playing key roles in fueling 2017 real estate trends, along with “Optionality,” the multi-purposing of in-demand spaces.
The outlook includes interviews and survey responses from more than 1,800 leading real estate experts, including investors, fund managers, developers, property companies, lenders, brokers, advisers and consultants.
Top trends for 2017:
- Niche Neighborhoods & Economic Diversity: Market characteristics such as authentic, niche neighborhoods with strong economic diversity are driving growth outside of gateway markets. The attractiveness to both workers and employers alike is supporting real estate growth.
- Labor Shortages: Construction labor shortages are driving up construction costs and stretching out project timelines, directly impacting availability of affordable real estate across all residential sectors.
- “Optionality” – A new driving force landlords can use to protect revenue potential by allowing multiple uses of the same space at different times, and permitting tenants to use only the space they need when they need it. For example, an office by day and a party/event venue by night.
- Digitization & Transparency: The digitization of real estate is revolutionizing the industry by improving accuracy, transaction speed and transparency, which in turn is fueling an “auto-correcting” real estate cycle. Rising property prices slowing transaction volumes while new supply remains under control is holding off the traditional “boom/bust” of previous cycles.
Top cities for 2017:
- Austin, TX
- Dallas/Fort Worth, TX
- Portland, OR
- Seattle, WA
- Los Angeles, CA
- Nashville, TN
- Raleigh/Durham, NC
- Orange County, CA
- Charlotte, NC
- San Francisco, CA
Atlanta and Denver both dropped out of the top 10 market ranking for 2017 but are both still in the top 20.
2017’s top 5 markets to watch and why:
- Columbus – A major university town, Columbus is seeing a surge in entrepreneurial activity.
- Richmond – The “hip factor” of downtown Richmond is on the rise.
- Pittsburgh – Emerging tech and other startups are flocking to Pittsburgh because of the access to talent from nearby universities and a 4% lower-than-the-national-average cost of doing business.
- Charleston – The Charleston economy is hitting on all cylinders with strong demographic growth and expanding technology, manufacturing and transportation industries.
- Salt Lake City – Salt Lake City is benefitting from a unique synergy between financial services and technology firm
Related Stories
Codes and Standards | Apr 4, 2022
Construction of industrial space continues robust growth
Construction and development of new industrial space in the U.S. remains robust, with all signs pointing to another big year in this market segment
Industry Research | Apr 4, 2022
Nonresidential Construction Spending Drops Slightly in February, Says ABC
National nonresidential construction spending was down 0.1% in February, according to an Associated Builders and Contractors analysis of data published today by the U.S. Census Bureau
Reconstruction & Renovation | Mar 28, 2022
Is your firm a reconstruction sector giant?
Is your firm active in the U.S. building reconstruction, renovation, historic preservation, and adaptive reuse markets? We invite you to participate in BD+C's inaugural Reconstruction Market Research Report.
Industry Research | Mar 28, 2022
ABC Construction Backlog Indicator unchanged in February
Associated Builders and Contractors reported today that its Construction Backlog Indicator remained unchanged at 8.0 months in February, according to an ABC member survey conducted Feb. 21 to March 8.
Industry Research | Mar 23, 2022
Architecture Billings Index (ABI) shows the demand for design service continues to grow
Demand for design services in February grew slightly since January, according to a new report today from The American Institute of Architects (AIA).
Industry Research | Mar 17, 2022
Construction input prices rise 2.6% in February, says ABC
Construction input prices increased 2.6% in February compared to the previous month, according to an Associated Builders and Contractors analysis of the U.S. Bureau of Labor Statistics’ Producer Price Index data released today
Museums | Mar 16, 2022
Unpacking the secrets to good museum storage
Museum leaders should focus as much design attention on the archives as the galleries themselves, according to a new white paper by Erin Flynn and Bruce Davis, architects and museum experts with the firm Cooper Robertson.
Codes and Standards | Mar 10, 2022
HOK offers guidance for reducing operational and embodied carbon in labs
Global design firm HOK has released research providing lab owners and developers guidance for reducing operational and embodied carbon to meet net zero goals.
Industry Research | Mar 9, 2022
Survey reveals five ways COVID-19 changed Americans’ impressions of public restrooms and facilities
Upon entering the third year of the pandemic, Americans are not only more sensitive to germs in public restrooms, they now hold higher standards for the cleanliness, condition and technology used in these shared spaces, according to the annual Healthy Handwashing Survey™ from Bradley Corporation conducted in January.
Codes and Standards | Mar 7, 2022
Late payments in the construction industry rose in 2021
Last year was a tough one for contractors when it comes to getting paid on time.
