The Link Between Markets with Most Degree-Holders and CRE Performance
The past decade has delivered a record number in that demographic.
A new Colliers report suggests that investors would be wise to focus on markets where people hold the highest number of degrees in higher education.
Cities with a greater number of persons with degrees boost economic and real estate performance as do those expected to grow their numbers the greatest. Some cities end up on both lists.
The past decade has produced the greatest number of degree-holders, according to Colliers, which collaborated with Lightcast on this report. Nearly 19 million people 25 years or older earned their bachelor’s or advanced degree compared to only 11 million from 2003 to 2013.
New York, Dallas, Los Angeles, Houston, and Atlanta welcomed the highest number of this demographic, and Austin, Tampa, Charlotte, and Orlando also made the top 20, posting some of the fastest growth overall. Others showing accelerated growth were Myrtle Beach, SC; Boise, ID; Sarasota, FL; and Fayetteville, AR.
The projection for the next decade includes Philadelphia, which is expected to replace Los Angeles in the top five, and Provo, UT; Barnstable, MA; Boise, ID; Huntsville, AL; and Austin are forecast to post rapid growth.
Meanwhile, California’s academic performance is expected to weaken in the next decade, or perhaps tread water. Other lagging markets can be found in Michigan and Ohio, it said.