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wC and the Urban Land Institute (ULI) have published the 47th edition of Emerging Trends in Real Estate® 2026, an annual forecast that dissects the forces shaping the sector for investors, developers and municipal leaders. The report examines how the market is responding to shifting economies, demographic trends and rapid technological progress.
ULI Nashville’s recent meeting highlighted the implications for the city. Below is a concise overview of the report’s findings and the expected real‑estate movements in the near term.
**Market Drivers**
The study defines attractive markets as those where population growth meets limited supply. The Northeast and Southeast currently rank highest in this regard.
**Data Collection**
Insights come from over 1,700 U.S. and Canadian real‑estate professionals, including investors, developers, lenders and advisors. The analysis pinpoints opportunities, risks and market shifts likely to dominate the next year.
**Top 10 Markets to Watch in 2026**
1. Dallas‑Fort Worth
2. Jersey City
3. Miami
4. Brooklyn
5. Houston
6. Nashville
7. Northern New Jersey
8. Tampa‑St. Petersburg
9. Manhattan
10. Phoenix
**Sector Highlights**
*Data Centers* – AI and cloud computing fuel a surge in demand, yet power shortages and supply bottlenecks keep capacity tight. With national vacancy under 2% and most sites pre‑leased, rents stay high and development remains competitive. Energy reliability is becoming a key factor in site selection.
*Student Housing* – After a robust 2024 rebound, the sector faces a more complex outlook. Strong federal aid, a record high school graduating class and steady international enrollment drove near‑record absorption and rent growth. However, demographic headwinds, visa delays and rising construction costs introduce uncertainty.
*Senior Housing* – As baby boomers hit 80 in 2026, demand for senior living is poised for a historic surge. Limited new supply, evolving care models and changing consumer preferences are pushing occupancy to record levels. Developers are expanding beyond traditional “independent living” to include wellness‑focused, tech‑enabled communities.
*Office Space* – The office market is stabilizing. Premium buildings in major hubs command record rents, while overall valuations lag far behind pre‑pandemic highs. Lower‑quality and peripheral properties face higher vacancies, creating a widening divide between trophy assets and struggling stock. Recovery will be uneven across classes and regions.
*Self‑Storage* – The asset class is shifting from a pure utility to a hybrid of lifestyle and investment. Housing constraints and a desire for flexible storage solutions drive demand. A new niche, “storage condos,” blends industrial and personal space, offering unique opportunities for individuals and small businesses.
**Broader Trends**
The report underscores that real‑estate growth will be driven by innovation, adaptation, efficiency and strategic reinvention. Technology is increasingly woven into the built environment, while demographic shifts forge new demand patterns. The industry is neither stagnant nor returning to old norms; it is actively reshaping itself for a new era.
For the full report, visit the ULI website. Subscribe for further updates on these developments and other Nashville‑related news.
