Echo Boomers weigh heavily on US Housing Future

Well here some more economic tea leaf readers weighing in on the future of US Housing Markets.  Like everything in life, take it all in but don’t just accept it because somebody said so…especially economists.  You know you can get statistics to prove what ever you want, it’s all a matter of what you present and how you frame it.

I do agree there will be a near term increase in the demand for rental housing due to a number of factors.  There’s even schools of thought saying today’s college grads and young professionals are even less likely to want to own a home in order to stay upwardly mobile as they will change jobs and careers many times….  There’s some validity to that thought too.

The story comes from University and NAR’s economists at a recent Trade Expo.  Remember, always follow the money to see the motivation for (influence on) a story.  It is very interesting to note their 2011 Profile of Home Buyer’s shows those age 18-34 represent 31 percent of all recent home purchases.  Can you imagine being 18 or 22 and buying a house at todays interest rates…now that’s smart, especially if you can qualify for financing.

Future of U.S. Housing Markets Depends Largely on Echo Boomers

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.”

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I find it funny that the NAR President who also happens to be a Real Estate broker knows so much about young peoples desires…hmmm.

Here’s the link to the full story on the NAR site.

This quote also has some strong correlation to economist Harry Dent’s thinking in his book “The Great Depression Ahead.”  Demographics are important: Think supply & demand, peak earning years, getting married & starting families, retirement, etc.  Age correlates to economics.

 

 

 

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