Sign up to save your podcasts
Or
Share The New Housing Crisis Part II
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
The New Housing Crisis Part II
CLICK THE PLAY BUTTON ABOVE TO LISTEN!
On Wednesday we spoke about the current housing crisis – a perfect storm for rising home prices with a pent up demand of Americans wanting to buy a home, stifled by a limited supply available for sale.
This sums up the here and now scenario, but what does this mean for the future?
As per the Forbes article contributed by NAR Chief Economist Lawrence Yun, some statistics that can help us understand what the real estate landscape of the future looks like includes:
- "There are 325 million people living in the U.S. today. One new birth occurs every 8 seconds, and one new death occurs every 11 seconds. At that rate, the population will rise to 352 million people in ten years. That is a gain of 27 million additional people in need of a roof over their head."
- "The number of people in their 30s will grow by 5 million in 10 years from today's 43 million. This 12% growth means that first-time homebuyers will become more plentiful."
- "The number of people in their 40's will grow by three million or 7%. They are the ones that will be trading-up to a better home as their finances improve with the years."
- "The population of those aged 65 and over is rising big time; expect an increase from the current 51 million to 69 million, a growth of 35%. Housing demand in warm weather and in the income tax-free states of Florida, Tennessee and Texas are set to boom."
So what does all this mean? Well, based on demographic factors alone, the population in the United States is expected to grow by 27 million over the next decade. Yun believes that existing home sales should reach approximately 6 million a year as a result, even if mortgage rates were to rise to 7%. Let's keep in mind that should any type of unforeseen catastrophic event take place, or any type of policy changes effecting the benefits of homeownership be implemented by our government, that this forecast of rising home values would certainly be impacted in a negative way.
However with reasonable parameters of economic growth and interest rate movements, based on demographic forces alone, meaning the growth of the U.S. population in need of housing purely due to birth rates vs. fatality rates, home sales should do well over the next decade. In Yun's view, new home sales should reach roughly 6 million per year, and the national median home price will likely hit $330,000 from the 2016 level of $234,000.
Want to join us?
Thank you all for listening. We're always here to support you, so connect get with us on Facebook or LinkedIn @mattweaverspeaks.
If you have a real estate topic for our next shot or blog, please shoot us a message on Facebook @mattweaverspeaks, we love listener requests!
If you're in the South Florida area and want to meet for lunch, send me a message on LinkedIn and let's get something on the calendar!
We also have our next Elevate conference upcoming in October in Boynton Beach, so if you're looking for a great seminar on how to grow your real estate business by leveraging key mortgage concepts, send me a message on Facebook @mattweaverspeaks to secure your seat today!
The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.
View all episodes
By Matt Weaver, Zack LewisCLICK THE PLAY BUTTON ABOVE TO LISTEN!
On Wednesday we spoke about the current housing crisis – a perfect storm for rising home prices with a pent up demand of Americans wanting to buy a home, stifled by a limited supply available for sale.
This sums up the here and now scenario, but what does this mean for the future?
As per the Forbes article contributed by NAR Chief Economist Lawrence Yun, some statistics that can help us understand what the real estate landscape of the future looks like includes:
- "There are 325 million people living in the U.S. today. One new birth occurs every 8 seconds, and one new death occurs every 11 seconds. At that rate, the population will rise to 352 million people in ten years. That is a gain of 27 million additional people in need of a roof over their head."
- "The number of people in their 30s will grow by 5 million in 10 years from today's 43 million. This 12% growth means that first-time homebuyers will become more plentiful."
- "The number of people in their 40's will grow by three million or 7%. They are the ones that will be trading-up to a better home as their finances improve with the years."
- "The population of those aged 65 and over is rising big time; expect an increase from the current 51 million to 69 million, a growth of 35%. Housing demand in warm weather and in the income tax-free states of Florida, Tennessee and Texas are set to boom."
So what does all this mean? Well, based on demographic factors alone, the population in the United States is expected to grow by 27 million over the next decade. Yun believes that existing home sales should reach approximately 6 million a year as a result, even if mortgage rates were to rise to 7%. Let's keep in mind that should any type of unforeseen catastrophic event take place, or any type of policy changes effecting the benefits of homeownership be implemented by our government, that this forecast of rising home values would certainly be impacted in a negative way.
However with reasonable parameters of economic growth and interest rate movements, based on demographic forces alone, meaning the growth of the U.S. population in need of housing purely due to birth rates vs. fatality rates, home sales should do well over the next decade. In Yun's view, new home sales should reach roughly 6 million per year, and the national median home price will likely hit $330,000 from the 2016 level of $234,000.
Want to join us?
Thank you all for listening. We're always here to support you, so connect get with us on Facebook or LinkedIn @mattweaverspeaks.
If you have a real estate topic for our next shot or blog, please shoot us a message on Facebook @mattweaverspeaks, we love listener requests!
If you're in the South Florida area and want to meet for lunch, send me a message on LinkedIn and let's get something on the calendar!
We also have our next Elevate conference upcoming in October in Boynton Beach, so if you're looking for a great seminar on how to grow your real estate business by leveraging key mortgage concepts, send me a message on Facebook @mattweaverspeaks to secure your seat today!
The views of this blog, "Your Morning Shot" podcast, and on this site in general are solely those of the authors, Matt Weaver (NMLS-175651) and Zack Lewis, and do not express the views or opinions of Finance of America Mortgage.