Home – 3 Trends that Could Impact the Real Estate Industry in 2017 [Free Report]

3 Trends that Could Impact the Real Estate Industry in 2017 [Free Report]

Posted on 02-17-2017 by Janelle Coates

 What’s the difference between a fad and a trend? In the digital age, it can be difficult to tell because news that goes viral seems to take on a life of its own. With deeper research across a broad spectrum of media and industry information, you can identify long-term trends that could impact your business.


See what we learned in our own research into Real Estate Industry trends in this free report.

 

Rule Changes on the Horizon

If the last two weeks are any indication, both the White House and Congress intend to make good on a campaign promise to loosen banking regulations. The warning shot across the bow? On February 3, President Trump signed an executive order requiring the Department of Labor to suspend implementation of a fiduciary responsibilities rule that was slated to go into effect on April 10. In addition, the president also signed an executive order that begins dismantling Dodd-Frank legislation that was passed in response to the 2008 financial crisis.  While a repeal of Dodd-Frank is on House Financial Services Committee Chairman Jeb Hensarling (R-Texas) wish list, full repeal is unlikely. As Commercial Investment Real Estate (CIRE) magazine recently noted, “The safer bet is that there will likely be enough support to rollback certain parts of Dodd-Frank, especially as it relates to lifting the burden on community banks.”  

 

CIRE also anticipates that President Trump will push for tax reforms that offer advantages that would benefit commercial real estate owners and investors—not a surprising stance given Trump’s long history in the real estate industry. Many believe the President will push to reduce the top capital gain tax rate, eliminate the 3.8 percent tax on net investment income for top-tier investors and make changes to depreciation rules.

 

Urban and Suburban Merge into Surban

 Mixed-use developments have been on trend for several years, but MarketWatch predicts that 2017 will mark a new trend that brings together suburban sprawl and urban density into “surban” communities. MarketWatch writes, “With surban living, it’s possible to walk to work, like in a city, as well as enjoying pedestrian access to groceries, entertainment and youth- and sport-friendly parks—plus reliably strong public schools.” The expectation is that with less sprawl and more inclusion—because neighborhoods include both high-end homes and more affordable townhouses and apartment communities—traffic congestion and air pollution will also improve.

 

Virtual Reality Comes to Real Estate

 If you paid attention to the commercial breaks between the big football game between Atlanta and New England, you may have noticed several ads aimed at viewers with VR goggles. But even if you missed the ads, you probably noticed the inordinate number of people wandering around city streets and suburban parks with their eyes glued to their phones as they played Pokémon Go last year. Virtual reality, once a technology only imagined in sci-fi movies—is here. As VR technology and apps improve and their use becomes more widespread among consumers, commercial and residential real estate professionals can leverage VR to engage prospective investors and buyers. With VR, for example, investors can take virtual tours of proposed buildings—before they’re built. Likewise, offering virtual tours of properties on the market can bring interested buyers in the door—figuratively and literally. What trends have you seen in your day-to-day work or news and business research you conduct?

 

3 Ways to Apply This Information Now

  1. Download our free report to see the other trends influencing the real estate industry in 2017.
  2. Check out how LexisNexis helps real estate professionals access the information they need to make faster, smarter decisions.
  3. Share this blog on LinkedIn to keep the dialogue going with your colleagues and contacts.

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