Top 10 Issues Affecting the Real Estate Industry

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The real estate industry is continuing to improve and evolve after years of bad news. Stephenville home owners can expect the real estate landscape to look very different over the next 10 to 30 years. Here are ten of the issues that will punctuate the industry:

  1. Aging Population: An aging population will dramatically impact real estate from housing, retail, health care, and other factors that define the success of different geographic areas.
  2. Funding of Public Employee Retirement Systems: For public employees who were counting on retirement funds, underfunding at the local and state levels could post a challenge for the real estate market.
  3. Student Debt: College is expensive, and student college debt averages about $45,000 per student. This is the first time student debt has outpaced consumer debt.
  4. Infrastructure Funding and U.S. Competitiveness: Governments are looking to public-private partnerships to replace federal funding for needed infrastructure improvements.
  5. Changing Office and Retail Demand: With more people shopping online and working remotely, large reductions in retail and office space will be seen. The role of brick and mortar real estate will look very different going forward.
  6. Real Estate Capital Markets Liquidity: Capital limitations on banks combined with growing capital demands by other sectors of the economy will create continuing uncertainty over access to capital.
  7. Global Change and Uncertainty: From the budget crisis in the U.S. to the European financial crisis, to the slowdown of China’s economy and uncertainty and slow growth in the Middle East, you can count on global change and uncertainty.
  8. Integration of Sustainability: Being eco-friendly is no longer a gimmick; sustainability is part of our world. How will the value of sustainable property investment change during this time?
  9. Low Cap Rates: Core property cap rates are back to 2007 levels. What happens if interest rates increase and cap rates decompress?
  10. Civil Discord and Political Gridlock: In order to move forward, we will need to cooperate both civilly and politically. This will be critical to determining the future of the real estate industry.

Looking for a Stephenville home? We are a local real estate company who would be happy to show you around. There are a variety of available properties, so please contact us if you would like to get together. We are experts in the Stephenville real estate market and would love to help you find the home of your dreams!

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“Eric & Jamie Hayden were great to work with. They are very responsive and know the area well. They have a great team around them that made the process of selling very easy. We were out of state during the sale and they went above and beyond to assist in coordinating with us. Definitely recommend!”
Melissa