02 Dec Changing Demographics Impact Housing Market
REALTORS form across the country gathered recently to discuss the effect changing homebuyer demographics have on the housing market during the REALTORS University Richard J. Rosenthal Center for Real Estate Studies forum at the recent 2014 REALTORS Conference & Expo. “Among primary residence homebuyers, the demographics have shifted dramatically, especially among first-time homebuyers, whose share of the market has dropped to its lowest level in decades,” said Jessica Lautz, director of member and consumer survey research for the National Association of REALTORS.
“We have also seen an increase in the median age and income of the average buyer, as well as in multigenerational household formations as adult children and elderly family members move back in with their families.”
Adult Millennials, those aged 18 to 33 were a popular topic of discussion for the panel. In 2014, Millennials saw 60 percent better job growth than the US overall and a drop in unemployment by 6 percent. This growth, along with improved economic opportunities, should encourage Millennials to form households and buy homes in the coming years.
Tightened inventory, difficult receiving credit and lower than average salaries have kept many of these buyers out of the market, but most economists see that as a temporary setback.
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