Future of U.S. Housing Markets
Depends Largely on Echo Boomers
Image(s) courtesy of: FreeDigitalPhotos.net
WASHINGTON (May 18, 2012) - The next two decades in housing markets depends largely on the Echo Boomers. That's according to panelists at the "Shifting Demographics and Housing Choice: A Whole New World?" session today during the Realtors® 2012 Midyear Legislative Meetings & Trade Expo here.
There are approximately 62 million echo boomers in the U.S. Also called "millennials," echo boomers are currently ages 17-31. According to the 2011 National Association of Realtors® Profile of Home Buyers and Sellers, younger home buyers - those ages 18-34 - represent 31 percent of all recent home purchases.
"We know that although many young people may be delaying home purchases in today's economic climate, most of them still aspire to homeownership," said NAR President Moe Veissi, broker-owner of Veissi & Associates Inc., in Miami. "Realtors® are committed to ensuring that the dream of homeownership can become a reality for generations of Americans to come."
During the session, economists NAR, the University of Washington, and Florida State University presented various research and data that illustrate the future of homeownership from a generational standpoint.
"Demography is destiny," said NAR Chief Economist Lawrence Yun. "In that vein, demographics can provide very useful insights into the future of housing and homeownership, and the results of these reports indicate that certain generational shifts will have a significant impact on the real estate industry over the next two decades."
NAR Economist Selma Hepp identified several key demographic trends on both ends of the housing age spectrum. The demand for affordable, accessible housing will increase as the 65-and-over population grows; at the same time, as seniors leave their homes and move into assisted living and other arrangements, they will add to the current supply of housing. Because of their sheer size, however, echo boomers will significantly impact the next two decades in housing.
"Echo boomers represent a long-term opportunity for a housing market recovery, but they are struggling in the current economic crisis," said NAR's Selma Hepp. "Consequently, demand for rental housing is likely to climb in the near term." Read More >
Information about NAR is available at www.realtor.org. News releases are posted in the website's "News and Commentary" tab.
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