There’s a huge construction boom coming and baby boomers will be behind it. The big generational bulge of the 20th century hasn’t finished exerting its outsized influence yet, and commercial real estate will continue feeling its weight in the next quarter century.
“We’re an aging population, so in 25 years there’s going to be a heavy focus on medical-related facilities,” said Kenneth Riggs, president and CEO of Real Estate Research Corp. Riggs also predicts a shift back toward affordable, multi-generational households that will translate to increased multifamily residential properties, particularly in close proximity to mass transit.
In seven years boomers will turn 75, a magical number in one way, said Linneman, because that’s when people usually begin moving into senior housing. When this huge and demanding demographic is ready for the next stage of their lifestyle, rest assured: “It will explode,” he said. “Right now senior housing is a food group in real estate, but it’s like vegan or something, not that established. In 25 years it will be a major food group.”