What keeps a developer up at night?

Posted on June 18, 2010 by David Leazenby

mixed-use-stars-280x300The news of the day can slow you down if you let it. Whether its a volatile stock market, financial market strain, an oil disaster, conflict in a foreign land or a fumbled block by a goalie. It can all take a toll on you. Then there is the unemployment and real estate debt issues hanging over everyone’s head today. That alone can make you restless. However, it is mostly the changes that lie ahead that keep real estate developers up at night. These are the things we need to get in front of and provide solutions. It’s what keeps us in business. Higher interest rates aside, we see the most profound changes around the corner in the demographic shifts of the buying power in America. This will have a dramatic impact on our businesses. It is generally moving toward younger, more single households that are delaying starting a family. This group of Americans, age 15-28, are unlike any before them. Their preferences for everything are far different than Baby Boomers and even Generation X; including housing, driving, clothing, food, technology and how they spend their free time. They have struggled more than most to land their first job out of college. Most all of them have yet to purchase a home. The impact of this recession on this record large demographic (est. 86 Million) of Generation Y can not be overstated. What will happen when we recover, and when they stop living with their parents and with their friends; and when they begin their careers in earnest and start “settling down?” What will they buy? Or will they? We’re thinking through the implications for our business in every project we are planning today. Have you figured out how it will affect yours?

This entry was posted in Housing, Our Philosophy and tagged generation y, housing, real estate trends

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