Development offers outsized opportunities in U.S. housing market

The U.S. housing market is poised for a substantial uptick in demand as the demographic shape of society intersects with COVID-19 induced shifts, according to Principal.

Markets with lower costs of living, higher-educated workforces, and exposure to some of the DIGITAL drivers are poised for strong household formation and housing demand, according to Principal. It believes development strategies may offer investors an attractive, risk-adjusted opportunity to harness the potential in this sector and not only provide the potential for excess returns, but also tailored solutions to meet the expanding breadth of evolving ESG and tenant needs.

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