Following the worst years for the housing market that most Americans have seen in their lifetimes, the years ahead could actually bring some of the best years for the very same market.
Based on market cycles, census data and other study factors, the Mortgage Bankers Association (MBA) delved into the housing outlook over the next decade to find that “By 2024, demographic and economic changes will bring what could be one of the largest expansions in the history of the U.S. housing market — 15.9 million additional households.”
The findings were published by the MBA in a white paper this week noting the strong housing projections are driven largely by a shift in age cohorts, and that all sectors of the housing market stand to benefit.
The precise mix for rental versus purchase demand will depend upon consumer choices, relative costs and government policy, MBA says, but both will be promising.
“Households will compare the costs and benefits of owning and of renting, while housing developers and investors will respond to price and rent signals — each mechanism providing a release valve when pressure builds in a particular market,” MBA states in its findings. “…regardless of the mix [among rental demand and homeownership],demand for all types of housing will be strong.”
Relative to the aging demographic, in the coming decade, the Census Bureau projects there will be 20 more people who are age 60 or older, driving household decisions for older renters and homeowners.
View the full findings from the Mortgage Bankers Association.
Written by Elizabeth Ecker