Monday, February 1, 2010

4 Demographic Trends That Will Affect Housing

4 Demographic Trends That Will Affect Housing

The report cites four major U.S. demographic trends that will have a major impact on housing.

1. Aging baby boomers (ages 55 to 64 years old): They will keep working, and many will be forced to stay in their suburban homes until values recover. Those who are able to move will choose mixed-age living environments that cater to active lifestyles. Walkable suburban town centers also will appeal to this group.

2. Younger baby boomers (46 to 54 years old): They are now entering their prime earning years but they will lack home equity and unlike the older members of their generation, they won't be able to purchase second homes. This will likely curb the prospects for the second-home market.

3. Generation Y: They are larger than the baby boom generation (with a population of about 86 million). As they enter the housing market, they are less interested in homeownership than their parents were when they were young adults. "They will be renters by necessity or choice for years ahead," says John K. McIlwain, author of the report.

4. Immigrants - both legal and illegal: They are nearly 40 million strong. They often prefer multi-generational households and if they can afford them, larger homes in neighborhoods with a strong sense of community.

Source: The Urban Land Institute


http://www.ibtimes.com/contents/20100201/4-demographic-trends-will-affect-housing.htm

1 comment:

hetyd4580 said...

Interesting blog. The "younger baby boomers" are a crucial segment to grasp in understanding housing trends. Fortunately, we are learning more and more about them now that they have a name (Generation Jones) and identity which is receiving so much national atttention. Google "Generation Jones", and you’ll see it’s gotten a ton of media attention, and many top commentators from many top publications and networks (Washington Post, Time magazine, NBC, Newsweek, ABC, etc.) now specifically use this term. In fact, the Associated Press' annual Trend Report chose the Rise of Generation Jones as the #1 trend of 2009. Here's a page with a good overview of recent media interest in GenJones: http://generationjones.com/2009latest.html

It is important to distinguish between the post-WWII demographic boom in births vs. the cultural generations born during that era. Generations are a function of the common formative experiences of its members, not the fertility rates of its parents. Many experts now believe it breaks down more or less this way:

DEMOGRAPHIC boom in babies: 1946-1964

Baby Boom GENERATION: 1942-1953

Generation Jones: 1954-1965

Generation X: 1966-1978


Sophisticated players in the housing industry will make serious bucks by learning about the key differences in consumer and real estate purchasing behavior among Jonesers which differs from its surrounding generations.