Introduction
There are a lot of reasons why people buy houses. Some, like myself, have kids and want to be able to have space for them. Say’s Charles Kirkland, for others, it’s about being close to work or family. And then there are those who just want a sense of security in their lives: homeownership can give you this feeling as long as you do it wisely!
Where will jobs be?
Jobs are moving to the suburbs. They’re also moving to city centers and rural areas.
According to a recent report by the Brookings Institution, job growth has been concentrated in suburban areas since 2000. From 2010-2016 alone, there was an increase of 3 million jobs outside of metropolitan areas–more than half of which were located within three miles of their urban cores (or “suburbia”). This trend is likely to continue as cities become more expensive and commuters seek affordable housing options outside their city limits.*
The number of households will increase by 10 million people over the next 10-12 years, but the number of housing units has remained stagnant over the last five years.
The number of households will increase by 10 million people over the next 10-12 years, but the number of housing units has remained stagnant over the last five years. The result is that there will be a greater demand for housing than can be provided by new construction or existing stock.
The majority of these new households will come from those who have migrated into an area and need a place to live. This means that many people will have to rent rather than buy–and this isn’t necessarily bad news for landlords!
By 2025 there will be an increase of 1.5 million new households created by those who have migrated into the area, with an additional 600,000 households created by people having children.
- By 2025, there will be an increase of 1.5 million new households created by those who have migrated into the area, with an additional 600,000 households created by people having children.
- These numbers are projected to increase over the next decade.
There will be a shortage of homes for sale as only 3 percent of homeowners plan on selling in 2020 while 22 percent plan on buying another home during that same time period.
As the real estate market continues to grow, there will be a shortage of homes for sale as only 3 percent of homeowners plan on selling in 2020 while 22 percent plan on buying another home during that same time period.
- The reason for this is simple: homeowners don’t need to sell their current residence and move because they are happy where they are. They may be planning on staying put due to family ties or job security, but either way it means there will be less inventory available for buyers.
Keep up with real estate news so you are informed when it comes time to sell or buy a home!
As you read this, there are thousands of people buying and selling real estate every single day. It’s important to know what’s happening in your local market, so that when it comes time for you to sell or buy a home, you’ll be prepared.
If you want to stay informed about all things real estate, here are some great resources:
Conclusion
We hope this article has given you some insight into the housing market and what it will look like over the next decade. As always, we encourage you to stay informed about real estate trends by following us on social media and reading our blog posts!
