If you are like most, you’re trying to predict the future so that you can invest wisely and plan accordingly. And if you want a glimpse of the future as it pertains to real estate, it helps to understand the generational demographics.
Notice below that we have a lot of Baby Boomers and Millennials in this country, and that’s no surprise we talk about these two generations a lot. These two generations will have huge impacts on the demand for housing. Let’s break this down below…
The baby boomers want to downsize and that puts them in direct competition with the millennials who just want to buy their first home. They are also looking for one level homes that traditionally were considered started homes because of the smaller square footage.
Baby boomers are also looking to buy second homes, vacation homes, rental homes, and investment properties that can be used for AirBNB type accommodations.
The Millennials are breathtaking in their size. This chart was created in 2015, those aged 24 and 25 in 2015 are the largest group on the chart. These young adults have had to live with their parents longer because of the Great recession that started due to the financial crisis in 2007. As the economy has improved, so has their hopes for getting into a home of their own.
We know that older millennials reassured experts who were skeptical that this generation would value home ownership. As the generation matures, we are going to need more homes.