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4 Real estate market predictions for the next decade
U.S. housing market outlook 2025-2035
Let me make it clear, I’m not just making assumptions. This information comes directly from the Harvard Joint Center for Housing Studies. While no one has a crystal ball, these organizations have a good track record of making accurate predictions.
Prediction number One: The “Renter Nation” is Rising
Harvard’s new projections say we’ll add about 8.2 million households between 2025 and 2035, which averages to 820,000 per year. In the 2000s, we were adding about 1.35 million households annually, and in the 2010s, it was 1.2 million per year. Slower growth means less raw demand pressure, but it’s not a crash. The “renter nation” is rising.
Harvard forecasts that in a world with less ownership, the number of renter households is projected to increase by 5.2 million. That’s millions of people looking for rental housing at a time when we’re already short by millions of units, somewhere between 3.5 and 5 million units, to be exact. We couldn’t keep up with that supply even when growth was faster. More people are looking for apartments, rental complexes, and houses to rent. If you’re an investor who’s been following our advice, the next decade will be exciting. A shift in housing views is expected, with more people renting over buying, changing real estate investment.
Prediction number Two: Who’s Driving Demand and New Asset Classes?
The growth we do see is concentrated. Older households are growing, with over 7.5 million new households in the next decade projected for those over 75. But if you want to look at ethnicities, Hispanic households are projected to add nearly 5 million new households by 2035. That’s your biggest growth market, folks. Rental demand will be strongest where affordability is worst, in places like Sunbelt cities, metropolitan suburbs, and even rural areas. But remember, cash flow is king. You won’t find it in LA or Miami; you’ll find it in cities like Indianapolis, Kansas City, Charlotte, and Birmingham. These are the “fly-over states” where investors can still find great cash flow.
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By Davidson FrancoisU.S. housing market outlook 2025-2035
Let me make it clear, I’m not just making assumptions. This information comes directly from the Harvard Joint Center for Housing Studies. While no one has a crystal ball, these organizations have a good track record of making accurate predictions.
Prediction number One: The “Renter Nation” is Rising
Harvard’s new projections say we’ll add about 8.2 million households between 2025 and 2035, which averages to 820,000 per year. In the 2000s, we were adding about 1.35 million households annually, and in the 2010s, it was 1.2 million per year. Slower growth means less raw demand pressure, but it’s not a crash. The “renter nation” is rising.
Harvard forecasts that in a world with less ownership, the number of renter households is projected to increase by 5.2 million. That’s millions of people looking for rental housing at a time when we’re already short by millions of units, somewhere between 3.5 and 5 million units, to be exact. We couldn’t keep up with that supply even when growth was faster. More people are looking for apartments, rental complexes, and houses to rent. If you’re an investor who’s been following our advice, the next decade will be exciting. A shift in housing views is expected, with more people renting over buying, changing real estate investment.
Prediction number Two: Who’s Driving Demand and New Asset Classes?
The growth we do see is concentrated. Older households are growing, with over 7.5 million new households in the next decade projected for those over 75. But if you want to look at ethnicities, Hispanic households are projected to add nearly 5 million new households by 2035. That’s your biggest growth market, folks. Rental demand will be strongest where affordability is worst, in places like Sunbelt cities, metropolitan suburbs, and even rural areas. But remember, cash flow is king. You won’t find it in LA or Miami; you’ll find it in cities like Indianapolis, Kansas City, Charlotte, and Birmingham. These are the “fly-over states” where investors can still find great cash flow.