The Vero Beach housing recovery should regain its footing, but at the same time, faces a number of challenges. This, according to a new survey by the Joint Center for Housing Studies at Harvard University.
The State of the Nation's Housing report released recently says tight credit, high unemployment and mounting student loan debt among young Americans are moderating growth and keeping Millennials and other first-time homebuyers out of the Vero Beach housing market.
The Vero Beach housing recovery is following the path of the broader economy and as long as the economy remains on the path of slow, but steady improvement, housing should follow suit.
Vero Beach Housing Tough for Young People
While Vero Beach housing saw notable increases in construction, home prices, and sales last year, household growth has yet to fully recover from the effects of the recession. The report went on to say that young Americans, saddled with student loan debt and falling incomes, continue to live with their parents. About 2.1 million more adult children in their 20s lived with their parents last year, and student loan balances increased by $114 billion, the survey said.
Still, given the sheer volume of young adults coming of age, the number of households in their 30s should increase by 2.7 million over the next decade, which should boost demand for new housing, according to the report.
Daniel McCue, research manager of the Joint Center, said the large Millennial generation will make their presence felt in the owner-occupied market just as they already have in the apartment market, where demand is strong, rents are rising, construction is robust, and property values increased by double digits for the fourth consecutive year in 2013.
One key to realizing the Millennials' potential in the Vero Beach housing market, is for the economy to grow to the point where their incomes start to rise. Also, the report noted that by 2025, minorities will comprise 36 percent of all U.S. households and 46 percent of those aged 25–34, accounting for nearly half of the typical first-time homebuyer market. The report also highlights the ongoing affordability challenge facing the country, as cost burdens remain near record levels and over 35 percent of Americans spend more than 30 percent of their income for housing.
The situation is particularly grim for renters, where 50 percent are cost-burdened and 28 percent are severely cost-burdened — meaning they spend more than half of their income for housing, researchers found.
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