Real Trends: The Future of Real Estate in the United States

Abstract

In this report, we venture into the future of real estate markets and products. Our definition of "real estate" for this purpose is not limited to buildings—such as homes, apartments, hotels, retail malls, offices, factories, and warehouses. Our definition also includes the social relationships that are formed and take place therein: How will we live, work, and socialize during the next decades? Our work further considers relevant trends in economic and financial markets, and how real estate markets mediate local and regional mobility or population growth. We also devote some time to the evolution of businesses that provide services to the real estate industry: leasing, transactions, energy, and the like. We have structured the report in six chapters. In the first chapter, we tackle the impact of demographic change. Chapter 2 is devoted to the urgent issue of affordable housing. In chapter 3 we conjecture about new and forthcoming innovations that have to do with physical space, building shapes, real estate products, and innovations in the usage of existing edifices. We then move in Chapter 4 to the technological building add-ons: sensors, cameras, computing devices, networks. Chapter 5 discusses computer and online technologies that are transforming the property market without changing its physical structures. Business leaders increasingly are making decisions based on analyses of big data. Chapter 6 summarizes the highlights of the report, focusing on the trends that we feel most comfortable betting on.

Keywords: Real Estate

JEL Classification: R31, R39, M29