February 26, 2016
8 MEGATRENDS THAT WILL TRANSFORM THE REAL ESTATE MARKET
From an article in Inman News by Yulia Kozhevnikova
Population Growth and Urbanization: Urban population will reach 6.3 billion by 2050; it’s at 3.9 billion today. 66% will live in towns and cities it’s at 54% today. There will be 41 megacities in 2030, today there are 28. We’ll see shrinking living areas. Look at the micro units of 260-360 square feet that are being created in New York City today.
- Aging Demographics: 56% of the world population will be over 60 by 2030 – 1.4 billion people, today there are 901 million over 60. 36.1% of Germany’s population will be over 60. Construction and renovation will need to accommodate seniors and their disabilities.
- Environmental Laws: Countries will actively develop energy efficiency and environmental standards for housing construction. The U.S. green material market will grow to $69 billion by 2019 from $49 billion in 2014.
- E-Commerce Advances: E-retail is growing 22% per year and should reach 20-25% of total turnover in most retail sectors by 2025. Brick and mortar shops will be for display only. Warehousing facilities will be in demand.
- Smart Home Technology: Smart home tech will soon be in each household. Complete smart home experience could be available by 2022.
- Telecommuting: Up to 30% of workers in industrialized countries will be telecommuting by 2019. Demand for office space will fall.
- Distance Learning: There are over 21 million students taking e-learning courses in developed countries now. 57% of respondents in Europe believe e-learning enrollment will increase by 20% over the next five years.
- Independent Travel: Cheap travel and a global collaborative economy have revolutionized how people travel. Airbnb posted over 1.5 million listings in over 190 countries last year