PwC & ULI – Real Estate Trends US & Canada

The PwC & ULI report on real estate trends in the US and Canada in 2024 highlights the expectation of a slow and cautious recovery in the industry. It emphasizes that the post-COVID world will not see a sudden return to pre-pandemic norms and that the current conditions will persist for a significant period of time. The report suggests that remote work will continue to be a prevalent trend, with many individuals not returning to the office as frequently or at all. This has profound implications for office owners, managers, brokers, and downtown areas that rely on a vibrant office market. Investors will need to reconsider their portfolio construction strategies in light of these shifts. The report introduces the concept of "The Great Reset," indicating that old assumptions about market dynamics, pricing, and risks must be challenged. Additionally, the report acknowledges the acceptance of higher interest rates for a prolonged period, which may negatively impact property values. While survey respondents anticipate a decline in inflation and a stabilization of interest rates, they do not expect commercial mortgage rates to decrease in the near future. Overall, the report advises industry stakeholders to prepare for a careful and deliberate recovery with potential challenges ahead.