DEMOGRAPHICS AND INCOME PATTERNS ARE DRIVING REAL ESTATE DEVELOPMENT IN AMERICA
PRIMEDIA’s National Real Estate Investor Examines the Influence
of Baby Boomers, Echo Boomers and Minorities
New York, New York – September 16, 2002 – Commercial real estate developers are responding to America’s changing demographics by building projects that serve the growing number of Baby Boomer, Echo Boomer and minority populations and tapping into new revenue streams, according to a report published in the September issue of PRIMEDIA’S National Real Estate Investor.
“The commercial real estate community has always weighed the importance of demographics in any development undertaking, but it is clear that the industry has only begun to realize the opportunities reflected in the 2000 Census numbers,” said Matt Valley, editor-in-chief of PRIMEDIA’s National Real Estate Investor. “Going forward, I think you’re going to see more development, particularly retail and multifamily housing, catering to these three demographic groups. Keep in mind historically, that commercial real estate products are a response to broader demographic trends. As changes occur in the makeup of the population, commercial real estate will respond accordingly.”
National Real Estate Investor highlights several examples that illustrate this trend in the marketplace. Some of the main points discussed in the report include the following:
- At 73.8 million people, Baby Boomers make up the largest segment of the population. They are predominantly large homeowners, but many have left suburban living behind and have moved to major cities. Since this segment of the population tends to rent or buy luxury apartments, real estate developers are constructing spacious units with such amenities as concierges and underground parking to meet their needs.
- Made up of 72.7 million people, Echo Boomers are younger and more ethnically diverse than the Baby Boomers. Echo Boomers like to live where the action is and favor a cutting-edge design. To meet their needs, more activity-oriented apartment complexes are being developed that include swimming pools, clubhouses, Jacuzzis and outdoor fireplaces.
- Hispanics comprise 12.5% of the population and African Americans make up 12.1%, according to 2000 Census data. As the influence of these two groups continues to have a greater impact on American society, developers are looking to build more ethnically oriented projects, particularly near international gateways along the U.S.-Mexico border and within inner cities. In each case, the powerful influence of their demographic presence is noted in the architectural design of retail stores and the construction of new infrastructure and cultural centers.
The September issue of PRIMEDIA’s National Real Estate Investor magazine is currently available. Additional information about its special report on the impact of demographic changes on the real estate sector can be found at www.nreionline.com.
About PRIMEDIA’s National Real Estate Investor
National Real Estate Investor is the leading authority on commercial real estate trends. The magazine’s readers represent a cross-section of disciplines — brokerage, construction, development, finance/investment, property management, corporate real estate and real estate services. No other publication provides as much independent research on a variety of topics that pertain to the office, industrial, retail, hotel and multifamily markets as NREI.
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