I've written previously about the "Five D's" that drive real estate according to Compass CEO Robert Reffkin:
Diplomas - kids graduating, parents downsizing
Diamonds - marriage, new household formation
Diapers - babies being born, upsizing
Divorce - one residence becomes two
Death - no explanation needed....
To this list, I have added - based on my own experience - DOGS! The need for outdoor space for a pet is a frequent driver of real estate transactions.
On a more macroeconomic level, UBS Managing Director Ali McCartney, recently outlined five "D" themes that have major repercussions for the housing market:
Deglobalization - changing patterns of global trade, the prospect of more manufacturing at home, changing workforce needs
Digitalization - think AI, data centers and the power production (and real estate) needed to fuel them
Demographics - aging population, the proliferation of senior living options, longer life spans from medical advances such as semaglutide medications (obesity and diabetes), oncology research and medical devices
Decarbonization - think solar & nuclear energy, clean water and desalination technologies
Debt - consider the repercussions of US debt and deficit on the relative security/risk of US government bonds and the impact on interest rate policy.
Interestingly, UBS sees rates coming down by the end of the year....