Between millennial homeownership, the slow uphill climb of the housing market, and a contrasting demand for and decline of renting, the housing outlook for the next few years can provide builders and contractors with some valuable insight. Read on to find out what trends you can expect to see in the market soon:
1) In high priced markets, renting may win out over buying
New tax laws have made home ownership even more expensive, especially in highly taxed and priced locations. As home prices rise faster than salaries and wages can keep up, it may be financially easier for people in more expensive urban areas to rent rather than buy, resulting in an increased demand for rentals in these cities.
2) Millennials are resuscitating the market
The housing market finally began its uphill climb in 2017 after a decade of decline — and as millennials begin aging into a more family-oriented stage of life, it’s likely this growth will continue.
3) Who’s moving to the big cites? The answer may surprise you!
As those over 60 start to look into retirement, they’re more inclined to pack up and move wherever their children are — which, more often than not, is an urban area. This makes the two demographics most likely to look into homeownership near urban areas those under 30 and over 60.
4) Aging out of rental demand
While big cities may see a rise in rental demand as a result of tax laws that make home ownership difficult, most other areas will likely see a decline over the next decade. As the number of young adults in their early 20s falls, the number of people in their 30s will rise — and, since young adults in their 20s are more likely to rent while those in their 30s are looking to buy, this could result in a significant decrease in rental demand, and a large uptick in first-time homebuyers.