NEW YORK CITY—It seems that the generation that was going to upend all the trends isn’t doing that much upending. In fact, if the most-read stories for July are any indication, millennials are finding the same comforts in the suburbs and home-ownership that their predecessors have.
Controversy reigned in our top story for the month, “Why Millennials Seem to Love Suburbia.” Responding to a GlobeSt.com poll, we asked why recent trends show the younger cohort returning to the suburbs. And the answer? A full 47% of respondents agreed it was services, and a perception that suburbs still have the market cornered on things like schools and property.
This news didn’t surprise RealShare Conference manager and proud millennial Emily Lettieri: “When it comes to Millennials, the word has always been ‘amenities.’ While the assumption has been that’s what draws them to cities, one only has to look at our RealShare Westchester County conference to see that suburban developments have also been responding in order to appeal to the group.”
How the suburbs are competing is at the heart of this question, and one that seems to be catching up. While there have been major in-roads by specific suburbs, the generation remains complex says Jay Parsons of MPF Research, and he believes “it’s vital that we learn how these consumers will affect the economy—and real estate—in material ways.”
To read the full story and see the full results, click here.
While millennials were the topic in the top story, their presence was clearly felt in the second most-read story “Is Multifamily Supply Overtaking Demand? A New Twist to the Debate Emerges.“
Conventional wisdom has been that a possible bubble has been forming, that a disconnect exists between the multifamily pipeline and the demand in the markets being developed. But new insight from NAREIT and a report from Axiometrics and SNL Financial suggest that this is just not true.
In the story, NAREIT cites the lack of alternatives, specifically from stricter underwriting on mortgages. And Axiometrics and SNL Financial see supply just now catching up to demand in certain markets, but while the supply might impact these markets, secondary markets are still laggards.
“So they probably have some time for rents to accelerate there,” says Ryan Severino, senior economist at Reis, “whereas in a lot of the major markets with supply booms, you’ll probably see some deceleration in rent growth.”
To read the full story, click here.
“Retail Cap Rates Plunge Again” slid into the third spot this month, showing that net lease still carry demands attention. With new research from the Boulder Group showing a decline of 25 bps for the quarter, GlobeSt.com looked deeper into the numbers and what it means for the sector and asset type. To read the story, click here.
A big change at Allstate drew readers’ eyes next: “Allstate Shifts to Entity-Level Investments.” Announcing a big move away from commercial properties, the company acknowledged that asset plays do not currently yield the same returns that operating companies do. To read the full story, click here.
And finally millennials were the topic again for the fifth most-read story, “Millennials Still Want to Own Homes.” GlobeSt.com spoke with Rick Sharga from Thought Leader Auction.com about the recent Case-Shiller and FHA reports to get the perspective from the ground-level. To read the full interview, click here.
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