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Top Ten Issues Affecting the Industry; Infrastructure and Housing Lead Latest List
The latest research by The Counselors of Real Estate identified the current and emerging issues expected to have the most significant impact on real estate. The organization says U.S. infrastructure has emerged as the leading concern.
The 2019-20 Top Ten Issues Affecting Real Estate report points out roads, bridges, tunnels, railways, airports, the power grid, water systems, and levees are giving way with greater frequency. While the White House and Congressional leadership have discussed funding of up to $2 trillion, the group notes it remains unclear what action government leaders will take.
“Inadequate infrastructure creates a hard ceiling to economic development, and real estate values are tied to sustainable growth,” said Julie Melander, CRE, 2019 chair 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 investment.”
Housing in America ranked second on The Counselors’ list, with the gap widening between increasingly expensive supply and the decreasing level of ability to pay. Weather and climate-related risks rounded out the top three issues of concern for The Counselors, as real estate investors are requiring that climate risk be assessed and factored into return projections and day-to-day decisions.
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