Van Martin of Martin Commercial Properties shared the current and future issues that he expects to have the most significant impact on real estate in 2019 and 2020, as identified by the Counselors of Real Estate. U.S. infrastructure and housing ranked as the leading concerns of the 1,100-member global real estate advisory organization.
“Inadequate infrastructure creates a hard ceiling to economic development, and real estate values are tied to sustainable growth,” said Martin, a member of the Counselors of Real Estate. “The U.S. must invest in infrastructure to compete globally, but right now it is lagging other nations on infrastructure systems, and levees are giving way with greater frequency. While the White House and congressional leadership have discussed funding of up to $2 trillion, it remains unclear what action government leaders will take.”
The Counselors of Real Estate is an international organization of commercial property professionals from leading real estate, financial, law, valuation and business advisory firms, as well as real property experts in academia and government.
Housing in America has been ranked second on the Counselors of Real Estate’s list, with the difference widening between the enormously expensive supply and the decreasing ability to pay for housing. In the housing equation, the hidden causes can be found both on the supply side and the demand side.
“Housing affordability is threatening the stability of the middle class, which will hit other parts of the economy as well,” said Martin. “Additionally, the new limits on the deductibility of state and local taxes are affecting both urban and suburban homeowners, while the liquidity of the housing market has been compromised by the difficulty of the baby-boom generation in finding buyers for the homes that represent the major portion of their net worth.”
Weather and climate-related risks round out the top three issues of concern for the Counselors of Real Estate.