Real Estate Trends: Demographics and Urbanization

Changing demographics

A generation of baby boomers continues to age and retire. Many downsize their living space. At the same time, more millennials are reaching an age when the “rent vs. buy” question arises. Ultimately, this trend will impact millions of future real estate decisions.

Urbanization

A larger home on a sizable lot in an outlying area is no longer the dream of every worker. Young professionals and others are increasingly attracted to mixed-use developments in more urban areas. Walkable communities are in vogue, and busy people embrace the time-saving idea of living, working and playing in one location.

Wealth gap

Real estate developers are responding to the increasing wealth gap in a variety of ways. Renting millennials drive construction of new high-density housing developments. Discount retail establishments increasingly appear in some areas, while luxury boutiques are more prominent in others.

Infrastructure limitations

In some areas, aging infrastructure limits real estate development. By contrast, communities that have the resources and the will to upgrade aging roads, bridges and utility services will benefit from continued growth.

Overall, the greater Charlotte area is well-positioned to respond to these developing trends. Mixed-used developments that respond to shifting demographics have been a key component of Charlotte’s economic growth for some time. Similarly, the addition of many walkable and workable mixed-used developments around Charlotte’s key neighborhoods is providing millenials with the properties they’re looking for in neighborhoods that were previously unaccessible. In many locales, investments in infrastructure have kept pace with commercial and residential growth. For example, the growth along East Independence Boulevard, while frustrating for motorists, is providing developers with more easily-accessible land to work with and helping further the Queen City’s borders.