The biggest challenge to the industry in the future will have to be inflation. As the years pass we see an increase in housing and renting prices, especially in California where living prices have always been high compared to other states. Inflation has highly impacted the real estate industry and is seen in examples of how houses that were worth $300,000 in the early 2000s are now worth up to as much as double in the present time. I believe that the real estate industry will continue to offer easy upper-middle-class living to its members as well.