Economic Growth Outlook and Demographics: A Look Ahead for Commercial Real Estate Investors
The US economic growth outlook remains strong over the next 10 years, according to Senior Vice President of Research Services John Chang. In a recent video for Marcus & Millichap, Chang emphasized the importance of looking ahead and identifying key factors that will drive economic growth.
Chang highlighted the significant impact of consumption on GDP, with almost 69% of GDP driven by consumer spending. He pointed out that the 45-to-54-year-old age group is the largest consumer segment, followed by the 35-to-44-year-old and 55-to-65-year-old groups. Additionally, Chang noted the influence of the millennial generation, with 72.2 million individuals between the ages of 28 and 43.
Looking forward, Chang projected a strong economic growth outlook for the next decade, citing factors such as reshoring and nearshoring of manufacturing and the transfer of wealth from baby boomers to younger generations. This transfer of wealth is expected to reach between $70 million and $90 million, driving increased spending and demand for various types of commercial real estate.
Chang advised investors to anticipate the rising tide of economic growth and to consider investing at what may seem like a low point, as a crest is building ahead. With a focus on forward-thinking and strategic investment, Chang’s insights provide valuable guidance for commercial real estate investors looking to capitalize on the future economic landscape.
