2016 Real Estate Trends

real estate trends

According to an article posted on realtormag.com, 2015 was quite possibly the best year for real estate since 2007. It is projected that the housing market will continue to expand and might even see even better results in 2016. What’s next for the housing market? One of the fundamental forces leading to this expansion in 2016 is the prediction that the job market will continue to develop, allowing consumers to save money and permit them to buy their first home or move to another one. Here are the 5 trends:

A RETURN TO NORMALCY

Jonathan Smoke,realtor.com’s chief economist, states, “We’ve survived 15 years of really irregular patterns, and subsequent to working off the staggering impacts of the lodging bust, we’re at long last seeing indications of more typical conditions.” There will be a steady and sound development in the sale and prices of homes in the coming year. Sales and new construction are due to return to previously recorded levels.

THE MILLENNIAL MARKET

Millennials deliantaed almost 2 billion deals in 2015 – 33% of home purchasers. It is expected that millennials will play a large role as first-time home buyers in 2016, with many “financially recovered” Generation-Xers and newly retired baby boomers following suit. Smokes states, “Since most of these people are already homeowners, they’ll play a double role, boosting the market as both sellers and buyers,Gen Xers are in their prime earning years and thus able to relocate to better neighborhoods for their families. Older boomers are approaching (or already in) retirement and seeking to downsize and lock in a lower cost of living.”

AFFORDABILITY

Manufacturers have been confronted with higher area costs, restricted work, and worries about the interest of the market at the entry level. All things considered, they have moved to developing more expensive homes, which has created new-home costs to rise essentially speedier than existing-home costs. In 2016, they likely will move to more moderate products in order to meet the needs of “entry-level buyers”.

MORTGAGE RATES WILL INCREASE

Mortgage rates will probably be unstable in 2016. Be that as it may, the latest move by the Federal Reserve to guide loan fees higher ought to push contract rates higher in the new year than the recorded lows they have been at for a considerable length of time. Smoke states,That level of increase is manageable, as consumers will have multiple tactics to mitigate some of that increase. However, higher rates will drive monthly payments higher, and, along with that, debt-to-income ratios will also go higher.”

INCREASE IN RENT

Rental expenses are soaring, and the expenses are liable to just go up in the new year.“Rents are accelerating at a more rapid pace than home prices, which are moderating,” Smoke says. “Because of this, it is more affordable to buy in more than three-quarters of the U.S. However, for the majority of renting households, buying is not a near-term option due to poor household credit scores, limited savings, and lack of documentable stable income of the kind necessary to qualify for a mortgage today.

 

3 Reasons To Consider Selling Land At An Auction

land development

 

Many of us tend to shy away from property auctions. Our fear that these properties need repair or will be unkempt is not always the case.  Auctions can also be a great way to sell well keptproperties and lots. Below are a few things we should contemplate when it comes to selling land at an auction:

Cost

Land auctions make an opposition among purchasers and wipe out the issue of valuing too high or too low. A base offer can be set to begin the procedure, however the high offer might very much surpass the value set for a customary deal contingent upon the quantity of bidders and their eagerness. In a general auction process, estimating too high can bring about the listing of a property to mull; offering your property at a low price will not allow you to achieve maximum price potential.

Target Date

Land auctions cement the time span for the business process. You determine the date for the auction and terms for the deal (frequently 30 days). Whether you’ve been attempting to offer your property for quite a while or are burnt out on conveying the expenses, an auction might give the specific timing that you need. Instability is a standout amongst the most disappointing parts of selling land and auctions eradicate a bit of that vagueness.

The art of negotiation

Land auctions permit the seller to set the terms of offer from the beginning and dispose of the bother of negotiations. You’ve effectively secured the of date of the deal, now you likewise can set the time span for the closing. Buyers go to the deal the with intent of purchasing on your terms and hence straying from the bother of negotiations, which at times gets to be passionate and disappoints both buyers and sellers.

Thanks for reading!

Carter Boehm

 

Best Apps for Project Management

apps blog

In this age of modern technology there is an app for almost everything. I stumbled upon a few apps in recent weeks that will make life easier for any project manager. Whether your goal is to boost your client submissions to a new heights, obtain more information regarding construction, or simply assist you with the management of your projects, these inexpensive apps will help your day run a little smoother.

Apps for impending projects

iTopoMaps

Price: $7.99
This apps enables developers to use topographic mapping capabilities to evaluate possible properties while choosing a new development

Geo Elevation
Price: $1.99
In conjunction with the topographic perspective of property, Geo Elevation will help you to to see an over area height diagram to truly figure out the adjustment in rise on a homesite. This app produces your present elevation readings, or gives you a chance to enter indicated figures, so you can print cross-segment diagrams utilizing either focuses from the field or particular shape lines from a topographic guide. With this device you can assess whether you can simply do secondary sitework, or possibly have to take a gander at the walkout storm cellar alternatives.

Planimeter
Price: 4.99
This App measures space and land regions on maps in light of satellite representation, so you can design plot lot lines on your phone or Tablet. You additionally can utilize this device to evaluate the measure of material that is required for work.

Easy Measure
Free
Presently homebuilders can utilize their Smartphone camera to take a wide range of estimations in the field. With Easy Measure you can decide estimated plot lines by measuring from your area to a tree or other point of interest. You can use this App to quantify measurements of rooms or assembling foot shaped impressions for existing homes.

Top Cities Developing Micro Apartments

micro apt 5

 

In a previous blog, the considerations and reasons behind the popularity of micro apartments were discussed. Now let’s take a look at some of the cities across North America that are developing these unique and  cutting-edgeproperties. Keep in mind the following properties are either still being considered, in the process of being built, or have already been built:

  • Columbus, OH. A company named Connect Realty is constructing a building consisting of nearly 58 micro apartment units starting at 450 sq ft.
  • Chicago, IL. A company named, FLATS Chicago has been rebuilding  single resident occupancy buildings and transforming them into inexpensive micro apartments.
  • Orlando, FL. A German architect is planning to build a micro apartment building with units that will allow a number of transforming elements and will range from 260 to 447 sq ft.
  • Portland, OR. Portland is already well-known for its abundance of tiny houses. In recent months, many companies such as Footprint Investments have developed a number of micro styled living options including but not limited to the popular Freedom Center.
  • Denver, CO. Plans for an old hotel located in close proximity to Mile High Stadium include the Nichols Partnership and Developers Realty Capital Group transforming the property into residential building called Turntable Studios. This rental property will consist  of 170 micro apartments, some as modest as 330 sq ft.
  • Spokane, WA. The Ridpath Club Apartments in Spokane is also micro apartment building formerly known as a hotel.
  • Nashville, TN. A 500 sq ft, 146 micro apartment building unit is being constructed by Giarratana Nashville LLC.
  • Edmonton, AB. Beljan Development is requesting to build a 40 unit residential building with micro apartments no bigger than 350 sq ft.
  • Providence, RI. Providence is an inexpensive location with an abundance of properties to accommodate those who wish to partake in micro apartment style living. One of the most popular micro apartment buildings, The Arcade is unique in the sense that it provides micro loft apartments on the second and third level but still operates as a mall on the lower level.
  • Des Moines, IA. The popularity of Des Moines inexpensive micro apartment building, The Flemming, is clear to see. The building is currently no longer accepting applications for units due to being full to capacity.

North Carolina’s Airport Development Study

North Carolina’s Airport Development Study

 CharlotteDouglasParkingDeck_4_300

 

Charlotte Douglas International Airport received its present name in 1982 and is the second biggest center point for American Airlines after Dallas/Fort Worth International Airport, with administration to 175 residential and universal destinations. This airport is continuing to develop and needs to make another all-inclusive strategy to guide future advancement on the area encompassing the air terminal.

Charlotte Douglas is encompassed by extensive tracts of undeveloped area, particularly toward the west and north, and the city would like to support more improvement in those tracts. In an effort to assist with development, Charlotte City Council voted in favor of spending $900,000 worth of air terminal assets for an expert to concentrate on the range and suggest best uses for the area.

The airports lead development director, Stuart Hair, will lead the study along with MXD Development. The MXD Firm has previously made ground-breaking strategies for other air terminals and its experts will concentrate on recognizing perfect utilizations for the 20 square miles of area surrounding the freely subsidized Charlotte Douglas.The area between the airport and Catawba River has been surveyed by engineers and although it is for the most part lush and undeveloped, it offers a percentage of the biggest tracts of empty area in Mecklenburg County.

The hefty price tag came as a shock to many. Questions of whether or not nearly a million dollars was absolutely necessary to investigate how to develop the airport have been raised. Those in opposition of the study believe engineers only need proper market conditions instead of creating a master approach. However, those in favor of the development plan argue that because of the extent of the study range, broad effort and gatherings that are arranged by the specialists make the study a worthy investment.

 

The Micro Apartment Phenomena

The Micro Apartment Phenomena

 micro apts 2

 

A micro-apartment, otherwise called a microflat, is a one-room, independent living space and is intended to suit a sitting space, washroom, resting space, and kitchenette with a size of 4-10 square meters. Now and again, inhabitants might likewise have admittance to a public restroom/shower, shared kitchen, porches and rooftop gardens.

The micro-apartments are frequently intended for draw down beds or futons, collapsing tables and work areas, and additional small apparatuses. An expansive 344-square-foot micro-apartment with sliding dividers joined to the tracks by the roof has been outlined by an engineer in Hong Kong, Gary Chang. By moving the dividers around, utilizing assembled as a part of collapsing furniture and workshops, he can change the space into 24 distinct rooms, including a pantry, kitchen, library, bar, computer game room, and lounge area. 

These apartments are popping up everywhere. Micro-housing is sensible in areas with high property values, supportive infrastructure for development, accessible public transportation, stable economies, walkable neighborhoods, and cities that are have fair to high density. The ever growing community of micro-housing is a new phenomenon in development. Below are few of the reasons why:  

 

The American Dream Deferred

Owning a home with a white picket fence is slowly falling off the list of goals for many people. There is no longer a desire to have a big space in the suburbs. Instead, many are holding off on getting married and having kids to remain in a smaller residence with easy access to city life.

Less Driving, More Walking

Living near city life means driving is not a necessity. Unlike many suburban areas, city life does not require a vehicle, which ultimately eliminate the task of looking for a parking spot after a long day of work.

Same City, Cheaper Apartment
Micro-apartments offer residence in cities that would almost be unaffordable for most. Many one-bedroom city apartments can be very expensive and for budget conscious renters, this makes living in the location of their dreams nearly impossible. Nearly. Micro-apartments cost hundreds of dollars less than average sized apartments to rent monthly.

Oakland : The Rise of America’s Most Underrated City

Carter Boehm discusses Oakland's resurging development

 

 

When people think of the Bay Area, the automatically think San Francisco, the Bay Bridge and Oakland. Things are rapidly changing in this regard. With increasing job growth leading up to 25 percent from 1990 to 2014, according to the California Center for Jobs and the Economy, due to boom in the technology sector, and a rising number of startup ecosystems in the area, Oakland is benefiting from San Francisco’s prosperity. And with 50 percent lower rates, the city has become a hotbed for San Francisco workers who can no longer afford to live in the city. Oakland, has become an alternative location for small business and startups in the area.

This development does not come without its challenges. With a soaring crime rate, and a listing as one of America’s most dangerous cities, there is still a reluctance in the development of housing. Critics believe that the growing demand for housing can trump this. Oakland’s building costs are 30 percent lower than San Francisco, and with a tremendous amount of construction in the area, more than 1,000 residences with affordable housing will increase in the area. One company named Lane Partners is an example of the development parties looking to develop housing properties in Oakland. The project – “ A great hope for Oakland” , offers edgy architecture that is attractive to technology and solar energy companies. This developer hopes to attract high rent in the area could boost overall office space sale. Lane partners has been on the forefront of developing tech space throughout the bay area and Silicon Valley for many years, so it is no surprise that Oakland was in the direction of its expansion.

Oakland’s beauty lies in its positioning as the city as a great regional hub, reachable by air, BART or train, and with less expensive accommodation than San Francisco people can explore the joys of the Bay Area without the security of affordable housing.

As more conversions take place other development companies based in the area also look to Oakland and East Oakland’s waterfront on both sides of the Jack London Square, as a new development prospect. Oakland based Signature Development recently completed an infrastructure known as “The Hive”. The Hive is a mixed use project that transformed a city block of historic structures near the 19th Street Bart Station and retail uses, plus 105 residential units.

Another renaissance it seems, is coming to Oakland. As resident weigh in on the boom in Oakland, it seems that tensions are rising with Oakland natives hoping that the city would not be be exploited commercially like her neighbor next door.

To learn more about the development boom in Oakland, visit this article by the Urban Land Institute

A World Reimagined- Building A City With Autonomous Cars

Carter Boehm discusses how autonomous cars could rule our highways

 

 

Something strange is happening in Ann Arbor, Michigan. The shadow of an emerging city creeps over the landscape, and by passers remain mystified by this unknown change, whose presence they can now feel. This shadow, this growing city over the landscape has been called -Mcity. Mcty is a place where transportation consists solely of robotic vehicles that steer themselves without a human at the wheel. This new innovation- driverless cars, must navigate several miles of the urban grid using a complex reliance on software, wireless communications, and sensor technology to get to and from their point of destination. Sounds impressive right? Well Mcity is just a simulation.

The buildings, as Urban Land Institute reports, “ are just facades, and the inhabitants unexpectedly step off curbs are just mechanized mannequins. Jonathan Levine, a University of Michigan professor of architecture and Urban Planning told the magazine “ You wouldn’t mistake it for a movie set, let alone a real city.” A new study introduced this year, relayed that the Boston Consulting Group, major automakers such as General motors are already rushing to add gadgetry that would give these cars an ability to pilot themselves on a low speed, stop and start traffic- jam conditions or in single lanes on highways, or even to find parking spaces and pull into them without human help.

This technology could really change the way we see our landscapes, in the same way that the urban street car or interstate highway was instrumental in developing the suburban and urban landscape in the US. “I think it’s going to be the most important transformational change in 100 years,” says Randall K. Rowe, chairman of Green Courte Partners, an Illinois-based private equity real estate investment firm. “It’s going to change the way we get around, the way we transport goods, and how we look at land use.”

Many experts in varying fields believe that driverless cars could start a revolution in the way we live. In a previous post, I mentioned some of the propositions for a walkable city. Well, not everyone is in full agreement with the Mcity model. Many worry about safety first, even though autonomous vehicle advocates point to Google’s experience, in which its experimental vehicles have travelled for 1.7 million miles on regular road, and a total of 11 minor accidents to its name. There are other debates on the table which present the argument that autonomous cars can free our roads of distracted drivers, and this in turn could make our cities even much more walkable.

Whether a city is walkable or driverless, it is important to remember that technological advancements in society have the ability to impact our landscape in a way that could potentially benefit or drive us out of our living spaces.

To learn more about MCity and the reimagination of a city without drivers, visit this article by Urban Land Institute

Improving Affordable Housing In Berlin

Carter Boehm discusses affordable housing in Berlin

 

Affordable housing is slowly becoming the thorn in the side of most urban cities. With more people flocking to cities in search of employment opportunities or proximity to resources, it is no wonder various housing authorities are facing challenges in providing housing options for people who are not able to live in neighborhoods with a high income bracket requirement. In covering affordable housing in the international space, City Lab reports on the resurgence of affordable housing in Berlin, and how the city is making unique strides to tackle its growing population.

By next year, many Berlin housing projects can expect a decrease in their rent by almost three thirds of their income. Since the cost of public housing in the city is too high, the tenants will now pay directly to how much they earn. This is new and innovative for most cities, especially one like Berlin.

City Lab reports that, “ In a city with a high number of public housing resident, the effect of the new rule could be striking. Of Berlin’s current 3.5 million residents, about 250,000 people live in housing projects, spread across some 125, 000 apartment.” Berlin city has also a record number of 280,000 apartments owned by four primary state property companies that will likewise be subject to the new rules.

To qualify for this housing, a single person should be earning no more than $18,040 and a couple should earn no more than $27,000. Tenants who also live in apartments without a proper record of income will be subject to a state audit to ensure that these policies are mandated. The question on everyone’s mind is – how did public housing get so damn high?

It is important to note that Berlin typically offers one of the world’s best public housing. In 2014. the average private rent in the city was $8 per square meter. This situation has been attributed a funding problem which covered the cities administration in the past years. Berlin city allowed companies to construct social housing, and they charged high-ish rents that the state then subsidized. This subsidy was eventually cut by 13 percent annually, and the letting companies were allowed to make up for the shortfall. The great thing about this new innovative administration, is its ability to keep low income earners in cities, despite the rising cost of rent. Berlin is still a city where majority of the tenants rent their homes and property. Still, an ongoing visage of a city threatened by rent hikes and evictions continually plagues this discussion on affordable housing. Fears from the middle class, whose housing security is now heightened are also on the forefront. The only question we can ask, at the end of the day, is what will Berlin do?

To learn more about affordable housing in Berlin, visit this article by City Labs

How European Cities Can Densify

ULI Europe has undertaken a broad effort to investigate the issue of densification and how European cities can densify in ways that keep the focus on people and create livable, vibrant, and thriving places. While discussions of density in the popular media often focus on the rapidly urbanizing megacities of Asia and Africa, the question of how to develop land most efficiently without sacrificing quality of life or opportunity is as urgent in Europe as it is elsewhere, a new report argues.

The Density Dividend: Solutions for Growing and Shrinking Cities says that density is a tool applicable to all cities no matter where they are in their growth cycles. In Europe, cities vary widely in terms of population growth: a few are attracting newcomers at a steady clip, whereas many others are steadily losing population through out-migration or low birth rates, or both. Several cities—particularly those in the former Eastern Bloc—built isolating residential towers, sprawling single-use suburbs, and gated communities that are now proving to be liabilities.

“Density is an essential component of how cities manage and accommodate the ebb and flow of urban change,” write coauthors Greg Clark, senior fellow at ULI Europe, and Tim Moonen, director of intelligence at the Business of Cities Ltd. “Today, the drivers of population growth, economic change, new lifestyle demands, and sustainability mean Europe’s cities have little choice but to optimize their land use and reimagine density for people,”

The Density Dividend was recently discussed at a panel on density and sprawl held during the 2015 ULI Fall Meeting in San Francisco. Alice Breheny, global cohead of research at TH Real Estate, a key sponsor of the report, remarked that the rural-to-urban migration occurring elsewhere in the world “finished a long time ago” in Europe. Nonetheless, European cities still need to densify in order to attract consumers who are moving to cities not out of economic necessity, but simply because they want to.

“The population isn’t growing organically anymore, apart from in a handful of locations,” Breheny said during the panel. “The move of people, urbanization, and densification is more about choice or the global nature of the workforce now and how mobile that is.” (Watch a video of this session.)

Published in October, The Density Dividend is a follow-up to an earlier publication,Density: Drivers, Dividends, and Debates, which set out to define what good density looks like, address myths and misperceptions around density, and differentiate the well-intentioned but misguided attempts at densification of the past from current efforts.

To illustrate how density can help cities regardless of whether they are growing, shrinking, or slowly rebounding, the report offers case studies of six cities that are at different points in their evolutionary paths. It identifies challenges each city faces in terms of maximizing density’s potential to suit its needs as well as strategies that are working to meet demand in scalable and sustainable ways, accentuate assets to attract new investment, or consolidate in cases where land is vacant and underused. The report’s findings were informed by forums held in each of the cities where feedback from stakeholders was incorporated into the final report.

Here are some case studies

Strongly Growing Cities: London, Istanbul, Stockholm

London, Istanbul, and Stockholm are identified as cities that continue to attract new businesses and residents in search of opportunity. Their central dilemma is how to ramp up development in ways that are human in scale.

London and Stockholm are two growing cities that are densifying thoughtfully, according to the report. Long-range planning has been key to their efforts.

In London, the London Housing Strategy has created a clear blueprint for delivering 42,000 new homes within a year. The strategy divides the city into 18 housing zones, which will allow local authorities to assemble and package brownfield land for development and obtain planning permission in advance. A “housing bank” that provides loans and other banking services to developers and housing associations to fund new home construction and renovation has been created as part of the strategy.

To learn more about other densifying cities in Europe , view this article Urban Land Institute