In a recent poll of real estate executives, the Altus Group found that most of these industry movers believe that the U.S housing industry would see good performance in 2016, although commercial real estate investors must take into account the presence of overseas capital and the modest pace of the country’s economic growth.
The study also found that most of the real estate sector is expecting sustained attention from foreign investors, who are projected to continue pouring money into the U.S. because of better security and stability.
“Demand for core investments in primary markets remains strong, supply is still catching up to demand in a few key sectors, and interest is trending upward in secondary markets, as some buyers who are priced out of the core markets seek alternatives,” according to a report by the World Property Journal
. “Additionally, tax changes enacted in late 2015 are expected to spur foreign investment in the U.S. market.”
“Real Confidence levels displayed better-than-average results, indicating that real estate development will increase even with labor and material costs on the rise,” the report said.
The Altus Group survey added that 80.4% of real estate executives expect an increase in interest rates this year, while 75% believe that the millennial workforce will have a significant influence in housing industry decisions in 2016 due to the rising prominence of mobile devices and telecommuting.
Economic recovery would be bolstered by record-low unemployment numbers as well as an upward trend in wages, which are expected to overtake inflation in the second part of the year.