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Posted August 28, 2015

Next Decade One of  Housing's Strongest 

According to research by the Mortgage Bankers Association (MBA) with new household formations predicted to be between 13.9 million and 15.9 million by 2024, the U.S. will see one of its strongest housing markets in history. The housing demand surge will be driven by Hispanics, Baby Boomers, and Millennials.


"Household formation has been depressed in recent years by a long, jobless recovery and by a lull in the growth of the working age population," said Lynn Fisher, MBA's Vice President of Research and Economics.  "Improving employment markets will build on major demographic trends - including maturing of Baby Boomers, Hispanics and Millennials - to create strong growth in both owner and rental housing markets over the next decade."

"When it comes to starting new households, age 35 is the new 25, as younger Americans are spending a longer time in school and delaying major life events like getting married and having children," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research.  "As Millennials age and create more housing demand, these long-term social trends will mix with demographic changes and the waning hang-over from the Great Recession with a net outcome of increased demand for housing. 

If this holds, then the 'pent-up demand' scenario cited by other housing authorities would be accurate. Though the MBA's report would not mean all new-home construction, of course, the NAHB recently pointed out that 2015 new single-family ome pace is about half of what would be considered a normal, annual amount - eight years after it started to decline.

You can find the MBA's news release here. Click through to that page and you can find a link to the study. 

 

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