Demographic trends are a cornerstone of sustainable real estate strategy. Understanding and watching the population dynamics — generational shifts and household formation — are ways to build resilience.

“Demographic trends influence investment performance across real estate and economic cycles, often acting as counter-cyclical drivers of demand during down periods,” says Indraneel Karlekar, head of global research and analytics at Clarion Partners. “Structural demographic trends often translate into need-based real estate demand, reducing volatility in asset performance and sustaining demand drivers well beyond a single business cycle.”

Three major demographic shifts are and will continue shaping real estate performances: the growing college-age population, maturing millennial households and aging baby boomers. These groups are expected to drive demand across various sectors.

According to Maureen Joyce, Barings’ head of U.S. real estate equity, und