It's always amazing to look back and see how things used to be, but what about looking ahead 10 years from now and thinking about what the XXX real estate market may be like?
There should be millions of new households nationwide which will help boost starter home and rental markets. Half of these new households will be minorities, and it all depends on their access to mortgage lending as to whether they rent or buy.
What About XXX Real Estate in 10 Years?
Figuring out the XXX real estate market in the future may be a challenge. Ten years from now it's expected the number of households in their 30s nationwide will increase by 2.7 million, and many of these younger households will be minorities. By the time we reach 2025 minorities are expected to account for 36% of all households in the US, and 46% of households aged between 25 and 34.This means they will account for nearly half of first-time buyers.
Baby boomers will boost the number of households age 65 and over by 10.7 million. It's expected a large number of these households will make modifications and improvements to their current homes to cope with the process of aging. However others will seek out new types of housing specially geared towards seniors.
Currently, minority households tend to have lower incomes than white households, and their demand for owner occupied housing will largely depend on the availability of mortgages designed to accommodate more limited resources.
It is believed that unless the mortgage market can accommodate this new generation of households it's possible that fewer people will be able to own their own home 10 years from now. This could mean the current mortgage industry would end up with a much smaller pool of potential borrowers unless it adapts.
Rentals are booming at the moment. Since homeownership reached a peak in 2005, there have been 1 million new renters annually which is double the average rate seen at any time since the 60s.
Although homeownership rates dropped again in 2013, which means they have fallen for nearly a decade, it anticipated the growing economy will eventually lead to increased household incomes. This is a key driver in housing demand, and even though interest rates and home prices have increased recently the numbers still favor those looking to buy in the XXX real estate market.