It all boils down to numbers. Between 13.9 and 15.9 million new households are expected by 2024; the next ten years are projected to be the strongest in US history for the housing market. The upsurge will be created primarily by two new groups of homeowners: Millennials and Hispanics.
The last ten years have seen housing contract. The 2008 financial crisis had a severe impact on Baby Boomers while Millennials were either renting or still living with their parents. The Hispanic population is now entering the middle class in greater numbers than ever before. Because Millennials are making the switch from renting to buying far later than previous generations (around ten years later) the surge in new Hispanic homeowners and young homeowners are likely to coincide.
In addition to these factors, the improving economy and the growing number of high-paying jobs will both encourage Americans of all ages and backgrounds to invest in home ownership.
A recent study called, Housing Demand: Demographics and the Numbers Behind the Coming Multi-Million Increase in Households, was conducted by the Mortgage Bankers Association. Not only does it predict a huge upsurge in housing demand, but it also identifies where the demand originates.
The following numbers identify the projected increase in home ownership in 2024 when compared with 2014:
• Hispanic households: 5.5 to 5.7 million
• Non-Hispanic White households: 3.4 to 5 million
• Asian households: 1.8 to 1.9 million
• African American households: 2.4 million
• Other households: 730,000 to 890,000
Surprisingly, there’s also growth expected from Baby Boomers—around 12.5 million to be exact.
On a yearly basis, we can expect to see an increase of 1.6 million homeowners a year. Overall home ownership is expected to rebound from historically low levels in 2008 to a healthy 65%. This is good news for the housing sector specifically, and the nation in general. What’s obvious is that the prospects for the economy are good and that mortgage loan officers, lenders, and real estate agents will prosper over the next decade.
Rising demand will provide job security for those in the housing industry, yet increasing federal lending regulations will make the job harder to do. That’s where Acuity National Real Estate Solutions enters the picture. Our job is to provide loan officers and realtors with a host of fast and efficient title and document services. We facilitate closings, provide title insurance, and retrieve, prepare, and record a variety of property documents. For more information on our local and inter-state services, please visit our homepage.