How will Demographics Influence the Economy and CRE?
Long-Term Focus Is Paramount For Success
- Real estate typically involves a 5 to 10-year hold period
- Short-term trends are impactful, but longer-term strategies often deliver more reliable results
- Demographics are key in shaping investors’ long-term outlooks
Demographic Changes Shape The Economy
- Pandemic accelerated Millennial-driven migration from cities into the suburbs, fueling demand for suburban real estate
- Millennial and Gen Z generations both maturing into higher-earning age groups
- Less of the older generations are leaving the workforce, keeping their high incomes as a driver of economic growth
Aging Population Will Improve CRE Demand Drivers
- Earnings growth among Millennials and Gen Zs will drive consumption up over the next five years
- Retail, industrial, self-store, hotels and housing should all benefit from the positive demographic lift
*Sources: Marcus & Millichap Research Services, Bureau of Labor Statistics
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