Top Four Markets for Real Estate

This post was written by Trisha Riggs, vice president of communications for ULI.

Washington, D.C. ranks as the top market in the United States for real estate investment and development, which, in the current economic environment, means it is the least troubled. So says the 2010 version of Emerging Trends in Real Estate®, released this week at ULI’s Annual Fall Meeting in San Francisco.

The widely anticipated annual industry overview, copublished by ULI and PricewaterhouseCoopers, was based this year on a record number of surveys and interviews with more than 900 developers, investors, brokers, analysts, researchers, appraisers, and academics. The overriding sentiment: No one is bullish on any particular market--even the perennial favorites such as Washington. Still, despite the faint enthusiasm, the report notes that "markets performing well before the crash will perform better coming out of it, while those lagging before will continue to lag."

The top four markets--all of which are gateway, 24-hour cities heavy on brain power with significant geographic barriers to entry:
• Washington: "Always the top market during recessions, buffered by the federal government;"
• San Francisco: "Highly volatile, but bounces back quickly;"
• Boston: "All those universities help buffer the market;" and
• New York: "Wall Street is down, but not out and always reinvents itself"

The number five market, Houston, is not a gateway city, but is an energy capital with a talented workforce, says the report.

Out of favor: manufacturing centers (mainly in the Midwest); secondary or tertiary cities requiring a flight connection to go overseas; formerly high-growth markets now suffering from overdevelopment and a bubble burst; and places where most development has been concentrated on the fringe.

Emerging Trends predicts that investment and development will start to pick up steam in a couple of years. In the meantime, those who are in a position to do so should buy or hold multifamily; buy hotels; buy distressed condos and second homes; buy land; buy or hold industrial; hold office; and apply a "triage" approach to retail.

Looking past the recession, "The future is about green development, infill, and transit-oriented development."

Comments

[Philippine Real Estate]

this blog is very insightful and useful to what i am looking for

[Washington DC demographics]

This is an excellent post on the top markets in the US for real estate investment and development. I can't wait to see how things shake out during our economic recovery.

Washington, DC is also ranked as the top global city for real estate investment by the Association of Foreign Investors in Real Estate.

For more detailed information, check out the Washington DC Info Center website for DC demographics

[Tax Liens]

This is an excellent post on the top markets in the US for real estate investment and development. I can't wait to see how things shake out during our economic recovery.

[Tax Liens]

The overriding sentiment: No one is bullish on any particular market--even the perennial favorites such as Washington. Still, despite the faint enthusiasm, the report notes that "markets performing well before the crash will perform better coming out of it, while those lagging before will continue to lag."