Rates are headed higher, debt availability is suppressed, and housing starts is weak.
Will there be demand and where will it be? These are a few of the tough questions investors are facing in today's market.
At the same time, bank failures continue to mount as commercial losses grow.
With Fannie Mae, Freddie Mac, FHA, and FDIC losses growing where is the light at the end of the tunnel? When the light comes, what will the opportunities be? Investors should not expect conditions to improve quickly.
Moreover, the years of 1,000,000 or more new housing units per year are in all likelihood gone forever.
On top of this, there is a strong argument that office and other commercial space faces similar constraints looking into the future.
If we accept that this is the new normal, where do we look from here? First, the need for housing isn't vanishing or even shrinking.
Household formation is going to continue to be strong for at least another decade.
At the moment, capacity is very high.
Also, the type and density of housing may be headed to a very different position.
A lot of housing today that is considered single family may end up holding two, three, or four household units in the future.
Investors who find a way to be a a part of this emerging trend if and as it develops stand to achieve significant economic wins.
Commercial has been under pressure for sometime at the hands of telecommuting.
This trend may be accelerating as tools like Gotowebinar, Gotomeeting, and Freeconferencecall gain further traction.
Again, investors and developers who grasp and embrace these emerging trends will be the winners.
Additionally, emerging trends in the knowledge industries are going to create winning growth markets.
Some seem to already be emerging.
On both the commercial and housing side, developers and investors who correctly identify these markets and the products that meet their needs for real estate will be the winners.
The United States is headed for 400,000,000 or more in population by mid century.
The economic opportunity of this growth is tremendous.
Add to this, that the working years of the adult population is growing and therefore each person's productivity is growing and the seeds for tremendous growth are underway.
Businesses and real estate industry participants and investors who capture this opportunity will achieve great economic gain.
The question is how to get on the train, what is the train, and where is the train going.
Will there be demand and where will it be? These are a few of the tough questions investors are facing in today's market.
At the same time, bank failures continue to mount as commercial losses grow.
With Fannie Mae, Freddie Mac, FHA, and FDIC losses growing where is the light at the end of the tunnel? When the light comes, what will the opportunities be? Investors should not expect conditions to improve quickly.
Moreover, the years of 1,000,000 or more new housing units per year are in all likelihood gone forever.
On top of this, there is a strong argument that office and other commercial space faces similar constraints looking into the future.
If we accept that this is the new normal, where do we look from here? First, the need for housing isn't vanishing or even shrinking.
Household formation is going to continue to be strong for at least another decade.
At the moment, capacity is very high.
Also, the type and density of housing may be headed to a very different position.
A lot of housing today that is considered single family may end up holding two, three, or four household units in the future.
Investors who find a way to be a a part of this emerging trend if and as it develops stand to achieve significant economic wins.
Commercial has been under pressure for sometime at the hands of telecommuting.
This trend may be accelerating as tools like Gotowebinar, Gotomeeting, and Freeconferencecall gain further traction.
Again, investors and developers who grasp and embrace these emerging trends will be the winners.
Additionally, emerging trends in the knowledge industries are going to create winning growth markets.
Some seem to already be emerging.
On both the commercial and housing side, developers and investors who correctly identify these markets and the products that meet their needs for real estate will be the winners.
The United States is headed for 400,000,000 or more in population by mid century.
The economic opportunity of this growth is tremendous.
Add to this, that the working years of the adult population is growing and therefore each person's productivity is growing and the seeds for tremendous growth are underway.
Businesses and real estate industry participants and investors who capture this opportunity will achieve great economic gain.
The question is how to get on the train, what is the train, and where is the train going.
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