Stable Growth for Real Estate Expected for 2015 through 2017

Dated: August 1 2015

Views: 23

The real estate industry is expected to have solid growth for this year that will lead up to 2017 according to the new Real Estate Consensus Forecast, a survey of leading real estate economists and analysts conducted by the Urban Land Institute (ULI) Center for Capital Markets and Real Estate. ULI is a non-profit education and research institute supported by its members. Although factors like economic downturns, interest rate spikes, over supplies, or foreign crises could potentially hinder the stability of the market, it is to be concluded that overall, real estate in the United States is predicted to have three more years of solid ground.

Highlights on real estate and overall economy that have the most positive impact for the next three years:


  • Single family housing sector has had positive growth for the third year straight in 2014 and starts are projected to increase from 647,400 units last year to 700,000 in 2015; 815,000 next year, up to 900,000 units in 2017. Though still below the 20-year average.
  • Home prices increased by 5.4% in 2014 and are expected to be at 5.0% in 2015, and 4.0% in 2016-2017.
  • Commercial property transactions are expected to increase for another two years and level off at a strong $500 billion in 2017.
  • Demand for real estate, especially for office and apartments will remain strong. Apartments will show consistent rental rate growth above the 20-year average of 2.6%. This year, rent is expected to rise by 3.5%, 3.0% in 2016, and 2.7% in 2017.
  • Decline in unemployment rate at 5.3% by the end of 2015, 5.0% for 2016, and 5% for 2017. Net job growth is expected to be 2.9 million per year compared to a long term average of 1.2 million.
  • Increasing treasury rates will also increase borrowing costs for real estate investors. However, the respondents do not anticipate it to considerably affect real estate capitalization rates for investments.

Questions or comments? Email us at or call 703-338-0872

Blog author image

Kim Barber

Buyers Whether you're looking for your first home, your dream home or an investment property, I'm committed to providing you with the highest quality buyer service. When making the type of investment ....

Latest Blog Posts

Price Your Home Appropriately

Here are three strategies to help you price your home correctly.Are you a homeowner who’s starting to think about selling your home? You’re probably wondering, “How should I price

Read More

4 Ways to Deliver Your Home to the Market

Here are the four ways to deliver your home to the real estate market.Are you thinking of selling your house and wondering whether you should do anything to improve it before putting it on the?

Read More

How to Maximize Your Home’s Value

Here are six tips to help you maximize your home’s value before you sell.Are you a homeowner who wants to maximize the value of your home? Do you want to walk away with the most money possible

Read More

3 Strategies on How to Buy and Sell Real Estate at the Same Time

Are you a homeowner who really wants to buy but isn’t sure how to sell your home and buy at the same time? There are two key things that you need to think about : 1. Is your home purchase

Read More