In every industry, the owners and leadership seek to understand how requirements will evolve.
Housing for the next decade and beyond follows the same pattern.
In the past, however expectations have been the by-product of the past.
For the first time in United States housing history, this may not the case going forward.
Instead housing characteristics are likely destined to be the product of currently developing pressures.
The potential for this shift is the by product of a fundamental change in market drivers.
In the past, two factors prevailed.
First, the United States was on an uninterrupted train of growth.
Second, the United States position as the dominating economic factor globally was unimpinged.
In the year 2010, the United States now projects population capping around 2050.
In other words, at some point, our inventory may not require expansion.
Secondly, while the U.
S.
economy and currency remains dominant, the relative position of the U.
S.
is receding compared to the whole.
This is important to housing because we are now contesting resources for housing with a much larger marketplace.
Without dwelling on the possible economic benefits, issues, and losses of this development, we can conclude that the context of U.
S.
housing is suddenly different than we've experienced in the past.
In other words, the past will not rule.
Because of this we should consider the structural housing market pressures which include:

1. The U.
   S.
   will compete more vigorously for capital than in the past.
   This will likely push up rates and favors making use of the existing housing base infrastructure.
   Therefore, changes increasing density per household on a square foot basis are likely.
   Thus, we may see more basement apartment suites.
   Children will share bedrooms more than the past has recommended.
   Grandparents will stay in the homes of their children.
   Housing designed to accommodate these items will demand a premium.
   
2. The burgeoning federal deficit and pressures to eliminated consumer debt such as more restrictive credit requirements will add to the pressures in item 1.
   
3. The world and the U.
   S.
   will focus on productivity at the individual level more intensely as growth based productivity becomes less reliable.
   This implies living characteristics for greater production.
   Housing will be closer to employment, shopping, and entertainment.
   This trend will be further supported by environmental demands and priorities.
   Housing that supports work at home and other productive measures will be favored and demand a premium.
   

While there are other pressures, this gives a sense of the kind of thinking that may forecast where best to invest for purchases and for capital improvement in our housing inventory.
Additionally, this may suggest certain housing areas could languish because of the economic pressure to avoid them.