Study: Biggest Opportunities in Boomer MarketDAILY REAL ESTATE NEWS | WEDNESDAY, JULY 01, 2015Though the real estate industry has made it a mission to bring Millennials into home ownership in recent years, a new study by research firm HouseCanarysuggests we not ignore an inconvenient truth: Baby boomers have the buying power.Battle of the AgesAfter Baby Boomers, What's Next for Housing?Millennials Outnumber Baby Boomers: A Cue for Real Estate?Despite Predictions, Baby Boomers Aren't Downsizing YetThe study raises questions about how wise it is to focus on Millennial buyers, given their economic limitations. If interest rates — which are expected to keepticking up this year — were to increase to 6 percent, more than one in three Millennials would no longer be able to afford a home at their current prices,HouseCanary found. Millennials are carrying high debt with limited savings, and their career growth has been slow.But baby boomers have fueled the housing market for decades as the biggest drivers of growth in the entrylevel market in the 1970s and '80s, as well as themoveup market in the '90s and 2000s. Boomers aren't slowing down: They’re expected to continue to drive household growth over the next 20 years "due tosignificant wealth and high home ownership rates," according to HouseCanary. Over the past year alone, baby boomers accounted for 244 percent ofhousehold growth annually."The vast imbalances in wealth and home ownership among baby boomers and Millennials are resulting in wide disparities in the demand for homebuyingversus renting," says HouseCanary President JP Ackerman. "Our analysis indicates that rising interest rates and home prices will exacerbate the situation, asthe Millennials' ability to purchase homes will be severely jeopardized as monthly payments get further out of reach."HouseCanary CEO Jeremy Sicklick says his company's research indicates greater opportunity for developers to target the aging population with forsaleinventory while targeting the younger generation with for rent inventory.
Source: House Canary
Author:Sherry Serna Phone: 720-364-8978 Dated: July 1st 2015 Views: 448 About Sherry: Whether you're just beginning your home search or selling your current home and looking for another,...
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