The Positive Forces Shaping the Horizon Perspective

Written By Christian Desnoes

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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Christian Desnoes
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