Millennials Hold Key To Future Housing Demand

The combination of a growing economy and pent-up demand for housing should boost household formation and home sales,Key according to a number of economists participating in an event for the National Association of Home Builders. Their forecast for this year and next focuses on how improving economic conditions will spur young Americans, who have been living with their parents or renting, to enter the market and begin buying homes. Maury Harris, managing director and chief U.S. economist at UBS, said people between the age of 25 and 34 will begin to feel better about their economic circumstances as unemployment comes down and credit availability eases. As this happens, Harris believes household formation will pick up and there will be fewer shared households and less doubling up. According to Harris, normal household formations have fallen short by about 2.5 million following the recent recession, in part due to graduating college students moving in with their parents or doubling up in apartments. Naturally, as economic conditions improve for these young adults, they will begin purchasing homes and forming households of their own. More here.

Michael Rosenbaum

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