Gruen Gruen + Associates, a research and consulting firm specializing in urban economic, market and land use/public policy analysis, makes the following predictions for the economy and real estate industry in 2006:

1. In 2006, the U.S. economy will be more buoyant than the contentious political mood of the country, with Gross Domestic Product growing between 3.4 and 3.8 percent. Local growth rates will vary above and below this positive nationwide output.

2.

Gruen Gruen + Associates, a research and consulting firm specializing in urban economic, market and land use/public policy analysis, makes the following predictions for the economy and real estate industry in 2006:

1. In 2006, the U.S. economy will be more buoyant than the contentious political mood of the country, with Gross Domestic Product growing between 3.4 and 3.8 percent. Local growth rates will vary above and below this positive nationwide output.

2. Areas waiting for high-tech employment to recover will begin to enjoy another upward cycle propelled by Internet-using innovations, acceptance of more biotech products, and the ability of chemical industries to avoid the drags of high oil prices.

3. Areas with global comparative advantages in entertainment, specialty manufacturing and logistics support will benefit from growth in exports and domestic demand.

4. Fastest employment growth will gravitate to suburban and exurban locations where local firms have strengths in these advantaged industries.

5. Except for condominium and town home products in areas where speculation from investors is more important than user demand, don’t bet on a bursting bubble to keep housing from being the land-value-increasing profitable real estate sweet spot.

6. Immigrants, members of Generation Y, and a slowly rising interest rate will support apartment market growth in areas where employment growth is at or above the national rate.

7. Adaptive re-uses, the replacement of obsolete shopping areas in slow growth areas, and attempts to be the first center where suburban growth is still expected will motivate retail real estate activity.

8. Ample capital will push up values across the country, but profit-bringing demands for office, industrial and hospitality uses will vary greatly between regions, with positive returns to new products restricted to uniquely strong sites.

If you or your company have a real estate forecast for 2006 that you’d like to share, send it to Jessica@inman.com and Inman News will consider it for publication.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Black Friday starts now! We've got great deals on Inman Connect New York in-person and virtual tickets. Register now×
Cyber Week Sale: Get 1 year of Inman Select for $75.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription