Top Trends Across US Real Estate Sectors

Shifting consumer preferences and demographics are driving demand and opportunities in certain property sectors

AEW Research Director Mike Acton, CFA® shares insights on evolving trends in US real estate property sectors resulting from shifting consumer preferences, demographics, and, of course, Covid-19. Highlights of Mike’s discussion:

  • Baby Boomers are moving toward life stages that require more assistance in daily living and appropriate housing solutions. A demographic wave is coming for senior housing. Such needs are exacerbated by falling birth rates, which means fewer adult children to care for aging parents.
  • Over the past ten years consumers have expressed an increasing demand for fresh food. Add to this consumers’ pandemic-related comfort with online grocery purchases – a potentially permanent trend – and we see increased need for refrigerated warehouses, or cold storage.
  • An aging population means increasing medical needs for aging Americans. Healthcare providers are responding by building offices away from huge downtown medical complexes, and closer to where their patients live, offering increased convenience for their patients.
  • The rapid growth of life science research is driving the need for appropriate property space for such activities. As lab space has specific safety and climate requirements, it is not easily adaptive to work from home or other alternative locations. This trend is driven further by the boost that Covid-related research added to this activity, not to mention heightened pursuits in private equity and venture capital in the life sciences.
All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided.

This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of February 23, 2022 and may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted. Actual results may vary.

This material may not be redistributed, published, or reproduced, in whole or in part. Although Natixis Investment Managers believes the information provided in this material to be reliable, including that from party sources, it does not guarantee the accuracy, adequacy or completeness of such information.

Real estate investing may be subject to risks including but not limited to declines in the value of real estate, risks related to general economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrowers.

CFA® and Chartered Financial Analyst® are registered trademarks owned by the CFA Institute.