Mixed-Use Properties Continue to Grow

MIXED-USE DEVELOPMENT IS EXPANDING WITH A FLEXIBLE APPROACH TO LIVE/WORK/PLAY PROJECTS:

“Real estate continues to evolve to be more flexible and serviceoriented, and the trends toward developing mixed-use properties, repurposing assets, and repositioning portfolios are not going away. … the trend of mixed-use redevelopment and densification playing out in the mall arena is likely to expand to other property types. Said one acquisitions director, ‘We are actively looking for class B properties in class A locations where there is an opportunity to repurpose lifestyle, power, even grocery-anchored centers to mixed-use live/work/play projects.’”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, pages 68 and 104

Single-Family Rentals Are Still Attractive

DEMOGRAPHICS MAY BE CHANGING OF WHEN VARIOUS GENERATIONS START FAMILIES, BUT THE DEMAND FOR FAMILY-FRIENDLY HOUSING WILL INCREASE:

“Whereas prior generations had children while they were in their mid-20s, many millennials have deferred childbirth to their 30s, and some studies suggest that they are going to start families in larger numbers over the next several years. With a newborn or a toddler, these young families would typically prefer a house with a yard, and more space in general than they might have in an apartment. That is the key to the growth in demand that we expect for built-for-rent single-family homes. The demographics show that as the ‘bulge’ of millennials moves up in age over the next four to five years, demand for familyfriendly housing will increase.”

“Built-for-Rent” Single-Family Housing Forecast: Easing In 2023 and Booming In 2024/2025 — Forbes

Although the “nascent stage of the industry makes the future hard to determine,” here are a few things to consider regarding single-family home trends:

“Nearly half of all master-planned communities are planning a build-forrent section.

“Thirty-five percent of single-family renters with budgets of $1,000-plus per month rent by choice.

“Single-family renters with rent budgets of $1,000-plus per month prefer to rent for more flexibility, as well as for less maintenance and fewer financial responsibilities, than they would have as homeowners.

• “Renters of single-family homes can have private yards, no one living above or below them, pets, and garages — the primary features that motivate people to own.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, pages 49–50

Increase in Rent-by-Choice Households Causes Blurring of Demos

THE ECONOMIC AND CULTURAL ARC OF RENTERS ARE SHIFTING UPWARD, WHICH INVITES A BLUR OF GENERATIONAL BEHAVIOR:

“What is different over the past several years has been a growth in discretionary rental households, also known as rent-bychoice households. According to Harvard’s Joint Center for Housing Studies (JCHS), the number of renters making at least $75,000 jumped by 48 percent over the decade ending just before the pandemic, to 11.3 million. With this increase, the share of renter households in this income group rose from 20 percent to 26 percent. Younger, older, and more economically, racially, and culturally diverse households together will bend the economic and cultural arc of rentership upward.”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 39

Because of this shift, “[apartment] industry leaders now recognize a blurring of behavioral lines across generations. When it comes to housing type need or preference, generational cohorts — generation Z, millennials, generation X, and empty-nester baby boomers — act more like each other than not. ‘Our customer experience research shows it’s more appropriate to classify people by [buying pattern] behaviors than by generational cohorts,’ says the CEO of one of the nation’s top 20 privately held multifamily developers. ‘You’re going to find people in gen Z and millennials and even gen Xers that have very similar behavioral components and some of that is stage of life, but not all of it is.’”

2023 Emerging Trends in Real Estate® Report — PWC and Urban Land Institute, page 40