The most significant impact on real estate for the long-term will be demographic shifts, according to The Counselors of Real Estate. CRE’s External Affairs Committee has released its 2015-16 "Top 10 Issues Affecting Real Estate" report and the impending shift of retiring Baby Boomers and the rising Millennial generation appear to be the biggest area to monitor. Lifestyle choices of the two groups will be closely watched. For seniors, the choice to stay in their homes, downsize or relocate to senior communities or assisted living will have a big impact not only on real estate but also the service sectors. The same can be said for Millennials, as they decide to buy or postpone it to a later date. Coming in second is the effect that outside investors will have as funds continue to flow into US real estate. There is potential for pressure on investments in the future as the excess capital supply has pushed the investment rate to near record highs. Rising interest rates round out the top three trends to watch, as both homebuyers and investors are preparing to see an increase. The devaluation of future cash flows will cause assets to be devalued when it happens. [REB]