HOUSTON – The Urban Land Institute (ULI) has published its annual Emerging Trends in Real Estate report, outlining the outlook for North American real estate markets in 2021.
ULI’s top 10 markets for 2021:
ONE: Raleigh/Durham, NC — A technology hub anchored by Research Triangle Park, with research universities such as Duke, UNC and NC State supplying a steady stream of talent. Strong job growth is driving robust homebuilding activity.
TWO: Austin, Texas — A major magnet for people and companies relocating from higher-tax West Coast states, Austin’s tech sector is rapidly expanding. Construction on Tesla’s new factory is moving quickly and is expected to create thousands of jobs.
THREE: Nashville, Tenn. — Once known for music and nightlife, Nashville has matured into a serious real estate market. The city’s growth has pushed hotel and development costs high, reflecting its transformation into a diversified economic center.
FOUR: Dallas, Texas — The Dallas area consistently attracts large corporate projects and strong job growth. New corporate campuses and activity around infrastructure such as Alliance Airport continue to fuel the region’s economy.
FIVE: Charlotte, NC — Charlotte’s economy has diversified beyond banking, opening a broad range of development opportunities. As pandemic-related challenges recede, the city is expected to resume robust expansion.
SIX: Tampa/St. Petersburg, Fla. — ULI classifies Tampa-St. Petersburg as a “Super Sun Belt” market. The region has seen significant in-migration, including from New York, boosting real estate demand during the pandemic.
SEVEN: Salt Lake City, Utah — A growing Western market that continues to attract residents and businesses leaving California. Suburban growth and migration away from high-tax states support the region’s strength.
EIGHT: Washington, D.C./Northern Virginia — Suburban markets around major gateway cities have gained appeal as pandemic-driven workplace changes shift demand. The arrival of Amazon’s HQ2 in Arlington’s Crystal City is a major boost.
NINE: Boston, Mass. — With MIT, Harvard and other research institutions nearby, Boston remains a key center for tech and innovation. Investors view it as an established economic, government and cultural powerhouse.
TEN: Long Island, NY — Suburban markets have benefited from the pandemic as many people reassess city living. Long Island’s established suburban communities have seen renewed interest as alternatives to crowded urban transit and buildings.
EMERGING TRENDS: TEXAS
Texas ranks highly in ULI’s Emerging Trends 2021 report for overall real estate prospects. Austin is No. 2, Dallas–Fort Worth is No. 4, and San Antonio is close behind at No. 12.
ULI highlights San Antonio for its low cost of living, high quality of life and opportunities for business growth. Houston, while showing strength in its single-family housing market, slipped in the rankings this year amid continued softness in energy markets.
Houston Falls to No. 52
Houston ranked No. 52 in overall real estate prospects for 2021, down from No. 42 the previous year. Despite the decline, job growth is expected to be a positive factor going forward.
The ULI report, which assesses 80 U.S. markets, also evaluates multifamily investment prospects. Austin ranks No. 4 and San Antonio ranks No. 9 for apartment investing. In industrial real estate, Dallas and Austin are recommended “buy” markets by over 70 percent of the experts surveyed. Houston is also considered an attractive market for industrial properties, including warehouses and fulfillment centers.
All four cities of the Texas Triangle—Austin, Dallas, San Antonio and Houston—score well for homebuilding prospects in the coming year. Austin and Dallas rank second and third nationally for homebuilding outlook.
The survey, now in its 42nd year, is produced by PwC US and ULI and incorporates insights from about 1,600 real estate professionals, including investors, fund managers, developers, brokers and lenders.
Jonathan Brinsden, CEO of Houston-based Midway, serves as ULI Americas Chairman. The Urban Land Institute, founded in 1936, is a non-profit education and research organization.
Oct. 20, 2020 Realty News Report Copyright 2020
Caption: Second Street in Austin where an office tower is being built for Google. Photo credit: Ralph Bivins, Realty News Report. Copyright 2020
File: The Top 10 Markets
File: (2) ULI Emerging Trends. PwC, Midway, Jonathan Brinsden, Texas Triangle. Austin, San Antonio, Dallas–Fort Worth. The Top 10 Markets