From student housing for non-students (really) to real estate tech, the industry is constantly evolving. With a potential recession on the horizon, how's the landscape shaping up this year?

In its 37th annual Emerging Trends in Real Estate report, auditing giant PricewaterhouseCoopers shed light on three key trends to look out for in 2016.

1. Secondary markets will experience a true revival

Just like larger metro areas, secondary markets—or "18-hour cities," as PwC calls them—have great availability of services and amenities, but at a much cheaper cost.

Cities like New Orleans, Atlanta and Sacramento are leading the pack in this transition. According to the report, more people are moving out of metropolitan areas and making their way into small towns and suburbs.

2. Foreign investments will continue to flow into the US real estate market

Once Chinese equity markets plunged last year, industry insiders wondered whether it would put a stop to the recent mass influx of Chinese capital into US real estate.

However, as China's economic woes worsen, US real estate becomes more and more attractive, which could speed up the capital flight from China even more.

3. The CMBS "refi cliff"

A refi cliff could inflict a "death blow to the CMBS industry" as securities issued at the peak of the recession become due. Over the next three years, more than $300B will need to be refinanced.

The PwC report says "a threat of haircuts" is still on the table for bondholders, with 20% of that $300B up for refinancing in need of new capital—something homebuyers might not have on hand.