"Fast forward to today, and America's real estate is "aging in place" much like its population. The generational wealth transition and the wave of retirements have long been expected as the baby boomers pass on their $80 trillion of net worth. But something something unexpected has happened along the way-the housing market froze and older owners stayed where they were or downgraded to compete with younger generations for "starter homes" that were also perfect for retired grandparents to be close to their families."
"For the first time in decades, we are faced with buildings that no longer create value for the businesses and people using them. A warehouse that is too small for robotics, an office that fails to attract top talent, or an apartment without adequate digital infrastructure all fall into this category. This is obsolescence. For business leaders and investors, this is not a niche concern in real estate. These assets either help people and companies compete or quietly drain productivity and capital."
America's housing and commercial property stock is aging in place as older owners stay put or downgrade, limiting turnover and supply. Slowing birth rates and generational shifts reduce demand for traditional housing, leaving many structures obsolete for modern uses. Warehouses too small for automation, offices that cannot attract talent, and apartments lacking digital infrastructure fail to create value and instead drain productivity and capital. Normalizing capital markets remove cheap debt cushions, exposing underperforming assets. Investors and business leaders face a choice: retrofit and repurpose buildings to meet contemporary needs or accept persistent underperformance and value erosion.
Read at Fortune
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