It’s always healthy to look forward,
especially this time of year, and consider how our lives may be affected in the
new year. This article by experts at
Boom Town Networks, Inc. Is thought
provoking and worthy of consideration. Here
are some key trends that they believe will impact the next two years and
beyond:
Generational Shifts: “Silver Tsunami” & Welcome Gen Z
As millions of aging Americans enter their 60s and 70s, there is potential for a variety of impacts on the housing market in the coming years. Senior housing demands often mean downsizing and cost saving, so the market could see higher demand for smaller, more affordable inventory. Because inventory of these smaller one-level homes is limited across the board in the U.S., competition could increase.
As millions of aging Americans enter their 60s and 70s, there is potential for a variety of impacts on the housing market in the coming years. Senior housing demands often mean downsizing and cost saving, so the market could see higher demand for smaller, more affordable inventory. Because inventory of these smaller one-level homes is limited across the board in the U.S., competition could increase.
It’s also time to say hello to Generation Z.
According to a TransUnion report, the number of Gen Z shoppers who took out a
mortgage more than doubled in one year. Year-over-year growth was 112%
in comparison to 12% from millennials. It’s important to consider what the
profile of a Gen Z homebuyer looks like. Similar to millennials, they are
riddled with student debt. That means smaller spaces and affordability are key.
In combination with the millennial market and the Silver Tsunami, it’s easy to
see why experts are predicting more of a demand for affordable inventory that
is both senior- and starter home-friendly.
Recession: Facts and Fears
Some experts predict that a recession will hit the U.S. economy around 2020-2021; however, this time around, the housing market is not the cause, as low unemployment , stricter Fed lending policy and steady/increased housing prices, moving towards a more balanced market. The most optimistic predictions lean towards a smooth descent into a balanced market, rather than a crash.
Some experts predict that a recession will hit the U.S. economy around 2020-2021; however, this time around, the housing market is not the cause, as low unemployment , stricter Fed lending policy and steady/increased housing prices, moving towards a more balanced market. The most optimistic predictions lean towards a smooth descent into a balanced market, rather than a crash.
However,
it’s important to be cautiously optimistic, but prepared. Recession fears,
warranted or not, could lead to seller hesitation and exacerbate an already
low-inventory market, with first-time buyers wanting to snap up good deals, but
sellers wanting to wait until prices rise.
Return of the Suburb
Census data is showing that the “back to the city” trend of the early 2010s is shifting. City population growth has declined while suburban growth has increased, mainly due to millennials. Because millennials are now having children, the rise of suburbia makes sense. They want the stability and affordability of what the suburbs offer; however, they still want some of the city-like amenities they’ve grown accustomed to. And so, the term “hipsturbia” was born. Essentially, it means “cool” suburban communities that are more walkable, accessible and fun. We’re seeing the trend grow in smaller communities outside of New York City, Los Angeles and San Francisco…and the NORTH FORK (my editorial addition!)
Census data is showing that the “back to the city” trend of the early 2010s is shifting. City population growth has declined while suburban growth has increased, mainly due to millennials. Because millennials are now having children, the rise of suburbia makes sense. They want the stability and affordability of what the suburbs offer; however, they still want some of the city-like amenities they’ve grown accustomed to. And so, the term “hipsturbia” was born. Essentially, it means “cool” suburban communities that are more walkable, accessible and fun. We’re seeing the trend grow in smaller communities outside of New York City, Los Angeles and San Francisco…and the NORTH FORK (my editorial addition!)
These trends, along with growing technological
sophistication, are important to consider, especially if you are thinking about
selling or buying a home on the North Fork. If you want to explore the ramifications for
you personally, I would be happy to meet with you and discuss how these trends may
impact your real estate strategy in the next few years. Call me – and let’s talk.
Source: RISmedia,
“5 Real Estate Trends to Watch in 2020.” November 28, 2019.
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