Investor interest is a major contributing factor to the success of a real estate market. How is your city doing?
Despite its slow start, 2014 has turned into a year of growth and relative prosperity, considering the turmoil that followed the 2007 crisis. And moving into 2015, the industry is poised bounce back even further.
The healthy swell of demand has helped spur development and improvements to home prices and sell ratios that should carry over into the New Year. One potentially adverse effect, however, has been a decrease to investors, particularly those paying in all cash.
In the Urban Land Institute’s predictive 2015 “Emerging Trends in Real Estate” report, the research group attempts to forecast the market through 2016, paying particularly close attention to investor prospects, which they determined through targeted surveys. ULI uses a simple two to five rating system in which two is “poor,” three is “fair,” four is “good” and five is “excellent.”
In Chicago, the only Midwestern city making ULI’s top 20, survey respondents displayed enthusiasm for a variety of property sectors, specifically industrial and multifamily. Investors spoke of concern for the area’s fiscal situation, but continued capital flow and strong economic growth over the last year have and will likely continue to brighten outlooks.
Check out our graph below to see how our city competes: