"The State Of The Real Estate Market"
Planning & Development | Economic | Real Estate
This is now the year of transition but at this point it is not clear what the economy will be transitioning to. There are those that suggest that everything will return to the patterns of the past and those that assert that nothing will ever be the same. The reality lies somewhere in between as it has been obvious that patterns have shifted as people and businesses adjust to the new realities in the world.
By Chris Kuehl, Ph.D. - Econmist for the National Real Estate Investors Assoc.
ICOR is assembling a panel of real estate & city planning and development experts across the Front Range to discuss specific to your local market.
This event will be a brief review of the past year and what you can expect in the next one to three years to plan, pivot, and calculate your investing trajectory!
- Morgan Hester, Colorado Springs Land Use Review
- Steve Posey, Colorado Springs Community Development
- Bill McAfee, Empire Title
Key Areas of Focus:
- The economy (and real estate sector) hang on
- single-family homes are expected to rise in value, while retail and hospitality will see the largest decline. The long-term outlook in the real estate sector hinges on the country’s ability to reign in the fallout from COVID-19.
- Exodus to the ‘burbs
- COVID-19 is accelerating suburban growth. With a greater emphasis on health and safety, the need for lower-density environments and more space has only grown. Remote work and higher taxes in large cities due to declining tourism and business tax revenue contribute to shifting away from an urban core.
- Work from home changes office outlook
- 94% of real estate professionals agree that companies will allow employees to work remotely at least part of the time in the future. As a result, some businesses will shrink their footprints as a cost-savings measure.
- Affordable housing remains a major issue.
- COVID-19 has only accelerated the housing disparities in the US as many low-income workers experience unemployment and possible eviction. With state and local governments facing large revenue declines, experts agree that the federal government has the wherewithal to provide programs and resources to this problem, including the expansion of the Low-Income Housing Tax Credit and Section 8 vouchers.
- The great fiscal challenge
- Long-term revenue declines will affect all government services but could be particularly impactful on infrastructure investments, a critical need (not just for real estate). An analysis by the National League of Cities predicts that 65% of cities will delay or cancel infrastructure projects due to COVID-19.