The aging of America is likely to be the most important demographic trend in the next 50 years, which will have a significant impact on the real estate industry, according to a new report by Lend Lease Real Estate Investments, New York.
The report, "Evolving America: Real Estate's Demand Profile," predicted today's affluent baby boomers are likely to live longer than their parents, travel more and move to senior-friendly locations. But developers of senior housing are warned not to overbuild yet, because the full impact won't be felt until after 2015.
Immigrants are spurring population growth of major gateway cities now, strengthening the rental housing market. This group is predicted to follow the boomers and move from the cities to the suburbs and other major metropolitan areas where job and home ownership growth will be substantial.
If immigration flows at current rates, rental housing demand will continue to be strong and help stabilize large cities such as New York, Los Angeles, San Francisco, Chicago, Miami, Washington, Boston and Houston. Other fast-growing cities -- such as Atlanta; Charlotte, Va.; Austin, Texas; Salt Lake City; and Las Vegas -- also will benefit as immigrants migrate there to meet labor shortages.