A widely held view among developers, builders, lenders, investors, etc., is that government risk aversion went way overboard coming out of the Great Recession, and that’s been holding back housing and the economy.

There’s data loaded for bear as evidence. A National Association of Realtors study on worrying U.S. homeownership trends estimates that if housing bounced back as it should have–i.e. without crushing overreach from regulators holding it back–the sector would have added $300 billion to the U.S. economy in 2016, with a GDP impact of 1.8%.

Moreover, a new NAR study

suggests that if a normal housing rebound had occurred, there’d have been organically-driven starts of an additional 3.7 million homes across the past eight years, more than double what actually happened.

It’s hard not to imagine where we’d be now if all that production and productivity had taken place in typical post-recession fashion.

Instead, housing’s recovery has had to crawl and claw through conditions and circumstances seemingly inimical to its very existence. Unpacking the root causes from the effects, seeing one root cause as separate and distinct from others, and understanding the root cause of the root causes have been problematic.

So, old Uncle Sam–who’s always up in everybody’s business, taxing this and restricting that and requiring this and making a new code to comply with here and banning activity there–gets blamed for being the bad guy behind all of the negatives. He’s the reason the economy’s sluggish. He’s the reason deals don’t get done, money can’t move, businesses’ hands are tied, people can’t start companies or hire workers, or get loans.

Now, the complexion is changing, the barriers–real and imagined–are being lowered, and a new policy era is getting traction, focused at least initially on undoing everything Uncle Sam was preoccupied doing over the last eight plus years.

Fact is, for housing and real estate to work well and normally, they must tolerate certain amounts of risk. The private sector only ever fully engages in business opportunities when competitive edge goes to ones whose risks are both bolder and smarter than others’. Overregulation has held back some fair amount of this investment, reduced the pool of active players, and stunted the overall growth of capital put in place in the sector because competition has been thwarted.

New days, new risk tolerance levels, and new rewards to those who’re successful at managing those risks, are at hand.

We’re starting to see signs everywhere. Here’s two examples (note, both of these articles are behind the WSJ paywall … please email me if that’s a problem):

“Does Anyone Remember How to Make a Subprime Mortgage?”

“Help for Home Buyers Burdened by Student Debt.”

The question is, have lenders, investors, builders, and developers learned enough, and do they remember enough to manage themselves as the government policy pendulum swings back to a position that encourages bold risk-taking among American companies?

Though modern design may be all the rage right now, rustic design has become a classic interior design trend for its charm and no-frills beauty. There are various subclasses of rustic design, from industrial rustic to rustic-chic: Industrial rustic mixes metals with natural fibers and neutral colors, while rustic-chic opts for blending contemporary and antique pieces with clean lines and a neutral color palette.

Rustic design adds an element of instant comfort to a client’s home, allowing simple transformations to a home to make a big impact on family and guests.

Reclaim Walls
Forget grandpa’s wood paneling in the basement—reclaimed wood paneling adds a rustic and chic charm to the home. That’s the beauty of the rustic design style: Repurposing has a vital place, placing the client close to nature and a simpler lifestyle. A client may be interested in using old pallets or old barn siding to create an accent wall, emphasizing the importance of reducing, reusing, and recycling, which is central to minimalism and the rustic aesthetic.

Another way to reclaim walls in clients’ homes is to expose what’s underneath them. The original brick may be under those old coats of paint, wallpaper, and plaster. Exposing part of the wall peels back the layers of the home’s history, and it’s a perfect space to pair industrial and rustic design elements, such as a steampunk lamp with hand-built bookshelves.

Create Rest and Relaxation
Rather than a homeowner designing their entire interior based on rustic design, it may be ideal to target one specific room. Rustic design offers a wonderful welcome in the living room, but this trend also has been known for its popularity in bedrooms.

The charm and return to simplicity with rustic design creates a soothing environment to help your clients fall right into a restful sleep. Imagine an oversized antique wooden bed, with beautiful antique sconces and bookshelves lining the walls. Encourage the display of family heirlooms in the bedroom. Have clients inherited pieces of furniture from family members that will play a starring role? What about smaller items, such as quilts or statues?

The simplicity of rustic bedrooms also offers opportunities for convenient and attractive storage, with roll-out drawers under a platform bed, or inside of a beautiful dresser or chest of drawers.

Textiles play an especially important role in the bedroom, where throws, quilts, curtains, and linens establish a mood of comfort. Mixing and matching lace with a thicker wool or flannel is an example of a possible combination.

Restore Old, Beautiful Features
Historic homes are the perfect atmosphere for rustic design. Rehabilitating a home’s interior preserves its character and its unique quirks and fixtures, such as preserving a sweeping and ornamental staircase, for example. Perhaps the client imagines a beautiful living room where a grand fireplace stands, but that fireplace needs work.

In some cases, alterations will be necessary, but it’s important to preserve as much of the original material and aesthetic as possible. Examination of original floor plans will reveal subtractive and additive work that may have been structural or hides away some of those beautiful historic features.

Homeowners will use these features as focal points in their design aesthetic: They’ll make that old fireplace a place for warmth and conversation, surrounding it with comfortable couches and chairs. Keep this in mind when assisting with the restoration of old home features.
Trends come and go, but elements of rustic design will likely remain popular interior design options due to their ability to add comfort and charm. Reclaiming walls and restoring historical features to a home are wonderful ways of adding to the rustic aesthetic. Neutral earth tones form a connection to nature and simplicity.

A rustic aesthetic in the living room will automatically feel inviting, while, some homeowners may want to only target the bedroom with rustic design to add an element of relaxation. Either way, this classic interior style has something to offer various clients.

Lifestyles in the 21st century are reinventing the idea of community across the environments where Americans live, work, shop, and play. Influenced by flexible job schedules, new family and household compositions, and mobile technology, the idea of home is extending beyond the traditional concept. A 2016 Ikea Life at Home survey found that 38% of respondents consider the neighborhood in which they live a part of their home. Obviously, Americans are looking beyond the confines of home for a sense of community engagement.

As boundaries blur, retailers are looking to create their own unique specialized sense of community. At the Austin, Texas, Yeti flagship store, the museum-like layout shifts the mindset from searching and buying to browsing and learning about the company’s outdoor-focused products. A wall of brand ambassador profiles dubbed “the wild ones” showcases curated collections of their tools of the trade. Community minded events from film screenings to porch concerts along with an in-store bar make the flagship a destination and solidify the company’s niche in the marketplace.

Hotels are also looking to become a destination in their local communities by opening the door not just to travelers but to locals as well. As we study commercial environments for our annual trend report, we see an increase in “living room lobbies,” hotels designed to welcome guests and locals alike with the homey feel of a neighborhood hangout. The newest addition to the 1Hotels brand is a Brooklyn Bridge location that artfully draws from the local flavor, catering to residents as much as tourists. The in-house eatery, aptly named Neighbors, features a selection of local artisanal goods. In addition, visitors will find a lobby lounge with seasonal beverages, a lobby farm stand, and a rooftop bar.

With six influential generations impacting the built environment for the first time, new communities must have something for everyone. Easton Park, a master planned community in Austin has it covered, differentiating themselves as a haven for outdoor enthusiasts with a variety of spaces including a trike track, grill stations, outdoor yoga, a hammock garden, and a great lawn. The grounds contain 300 acres of pathways, parks, trail systems, and outdoor amenities; they are even calling their grand opening event “Parkapalooza.”

In Orlando, Fla., the Lake Nona neighborhood, an 11,000-acre mixed use development, is anchored by a health and life sciences park, putting wellness at its core. The on-site hospitals and research buildings including, the University of Central Florida College of Medicine and Health Sciences Campus, may be attractive to an older generation hoping to age in place in their homes. The community also features a smart model home dubbed the Wellness Home Innovation Technology (WHIT) which integrates features like a wellness hub in the kitchen and a six stage air filtration system to improve the health of its occupants.

We have been tracking big shifts in the home such as “Streetside Living,” a trend signaled by the return of the front porch, as a way for disconnected homeowners to regain a sense of community. The latest construction census showed 65% of new homes include front porches, up from 42% in 1992. Now we see this physical extension into the community encompass the whole home with the addition of back porches and even side yards converted into outdoor living space. On our radar is the next evolution, second-story streetside living, where outdoor spaces move upstairs with master suite balconies and rooftop lounges.

What does this mean for builders? Evolving lifestyles will continue to shape the home and inspire new communities. The home is a reflection of the way we live and the key to successfully incorporating community will be balancing specialty zones while maintaining flexibility as the pace of technology and lifestyle continues to change.