The following Q&A was completed as part of our conversational Commercial Real Estate FAQ Interview Series, we hope you find it helpful.
As families migrate to particular core “boom” areas throughout the United States, there’s an increased need for housing. Without new development, housing grows unaffordable, making it a challenge for these families to resettle in their new chosen location. Real estate development teams are starting to work with municipalities to provide programs with A products and B tier pricing.
Richard Wilson: David, what new real estate trends are you seeing right now in real estate development that are just now emerging and that maybe wouldn’t be obvious unless you were focused 100% on this area?
David Greer: Yeah, I think a couple things on the development side. One is with the migration of a lot of people to these large core areas. We’re seeing affordability for rental products going up and it’s becoming more challenging for people to find nice housing. And so with that we’re finding a lot of these developers that are working with municipalities to put together programs where they can basically deliver A type products at B pricing. So that’s definitely a trend that we’re seeing and in some locations we’re starting to see modular construction come in, especially pre-Covid in the hospitality industry I think it’s becoming more prevalent than it was several years ago.
Richard: Ok, great.