PwC: Top US Markets for Real Estate Investment in 2015
Mitch Roschelle, the US real estate advisory practice leader at PwC, sat down with Bloomberg's Pimm Fox to discuss the top US markets for real estate investment in 2015.
Roschelle points out that with prime buildings in New York and DC fetching $1K+ PSF rents, investors are increasingly looking for higher yields and replacement costs. And Texas cities driven by oil score high in those categories, especially as their economies diversify. On the note of diversifying, he says that perennial retireee favorite Phoenix is catching on with millennials thanks to the area's impressive job growth. "Jobs are chasing people," he says. "Not the other way around." And areas popular with students (e.g. Phoenix and Charlotte) are reeling in employers.
Jobs and young residents should revive several markets in 2015 and even boost the fortunes of downtrodden cities. When it comes to the year's biggest comeback kid, Roschelle puts his money on Detroit.