Analysis predict that the housing market collapse could possibly create an entire generation of permanent renters, This generation, called the Millennials also known as echo boomers and generation Y ( 25-34 age group) are graduating from college with huge debt from student loans and no jobs, therefore moving back in with Mom and Dad.
For the Millennials, an 8.2 % unemployment rate and large amount of student loan debt have made them a little leery of home ownership and who can blame them. You don’t have to be a Millennial to feel discouraged about the housing market! The number of first-time buyers has slid 20 percent during the last three years, according to John Burns Real Estate Consulting, and most likely will continue for the next few years. Rutgers Business School professor Ben Sopranzetti says, “This is purely an economic phenomenon, not a behavioral one.”
Even when home ownership does become a priority the kind of housing available today presents a challenge. With the Senior population which includes many baby boomers aging and moving out of suburban homes into smaller residents or retirement communities could leave more housing in the next two decades than can be absorbed. The younger generation seems to be more interested in urban communities that have cultural and commercial amenities nearby. This trend is not new as we know how the cycle of life goes, as this was a trend back before the boom when urban living was becoming popular again and cities were revitalizing their downtown areas.
Don’t be surprised in the coming years for the demand for attached homes, such as condos and town-homes, to grow between now and 2030.
If you are looking to purchase a home that is not urban, but in the charming town of Fountain Hills, I would love to talk with you! For a quick response, you can contact me at 480 888 6708 or email me regarding Fountain Hills neighborhoods, price trends, short sales, etc. I’ll get back to you ASAP!