Women, retirees, immigrants and young adults expected to have most impact on housing industry in next decade
By Kelly Leighton | Oct. 21, 2016 | 2 min. read
Women, retirees, immigrants and young adults are the four groups that will “reshape” America, including the housing industry, according to the Urban Land Institute’s report, Demographic Strategies for Real Estate.
Women, who earn more than half (58 percent) of college degrees, also make more than their spouses 38 percent of the time, and they are having children later in life, and on their own more. The report predicts that in the next decade, women in the workforce will increase. Thus, it’s most likely women will have more say in the housing market.
Immigration has hit its’ peak since the 1920s, and the report found that 15 percent of Americans are foreign-born. There are 44 million immigrants residing in the U.S. currently, and if immigration continues at this pace, more than one in seven residents will be foreign-born by 2025. “These consumers are vital to the economy, but common wisdom about the ways they form households, buy homes and behave in the marketplace no longer holds. Immigration has shifted from impoverished refugees walking across the border or landing via boat to affluent middle- and upper-class families fleeing their native lands after decades of amazing economic growth,” the report said.
Retirees will also impact the future housing market. In the next decade, 66 million people will be at least 65, and the numbers will continue to grow, according to the report. Those agents that cater to retirees will profit, the report suggested.
Young adults, those aged from 23 to 27, are more likely to live with their families or in an apartment now. However, as they move up the job ladder, chances are they will begin to house hunt, and make their mark on the housing industry.
In addition to people trends, housing trends will also change. The report predicts that suburbs will see nearly 80 percent of new households. The report also said rental rates will continue to increase.
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