Commercial Housing Tops, Student Loans Hurt

Anna Spiewak, News Editor, Commercial Property Executive, reports on Pension Real Estate Association’s 2013 Spring Conference in Washington, D.C.:

David Rubenstein, The Carlyle Group

As for which category of commercial real estate is best to put your money in going forward — housing still takes the cake. There is a perceived shortage of housing in the United States today, as no new development has gone up the last couple of years, and yet the population continues to drastically grow, to 315 million in 2013, up by 2.2 million from the year 2010, according to the Census Bureau, which predicts that number to increase to 400 million by 2050.
Ken Rosen brought up the latest Fannie Mae Monthly National Housing Survey, which reflects that “people under the age of 35 don’t have their lives settled yet.” Many of them cannot afford putting down a downpayment on a house or a condo, because generation X and Y are stricken with the burden of student debt.

Read the whole article (recommended): PREA Special Report: Housing Still Surest Bet in CRE | Commercial Property Executive.

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