Younger Home Buyers Will Be Less Wealthy
Children of Baby Boomers, aka Echo Boomers, Millennials or Gen Y, born between 1981 and 2000, will drive housing demand during the coming decade, 2010 through 2020. There will be 5.9 million more of them in the peak home-buying years of age 25 and 44 than there were when the Boomers moved through that phase of life, according to Harvard's Joint Center for Housing Studies. Its influential annual report, State of the Nation's Housing, was just released today.
The bad news: The Echo Boomers will probably have less money to spend on housing -- and other needs -- than their predecessors. "The depth of the downturn may, for the first time in at least 40 years, reduce the real median household incomes of each 10-year [age group] relative to its predecessor by 2010," says the report. That new decade happens to start in only seven little months.
Demand for homes is going to shift over the next 20 years thanks to the aging Boomers (not that I would have any firsthand knowledge of that) and their Echo Boomer progeny. We'll see lots of demand for starter homes and rentals, as well as for seniors' housing. As older folks sell their homes off to the young 'uns, "adjustments to the existing stock are likely, both through remodeling and pricing," say the folks at Harvard. If the Echo Boomers' wealth is going down, you can guess which way that pricing trend is going to go.
"The first wave of change will occur in the inner suburbs of large metropolitan areas where people now in their 70s and 80s are concentrated, then fan out to the outer suburbs as the baby boomers start to downsize," the report says.
June 22, 2009; 6:00 AM ET
Categories: Statistics , The economy , The market
Save & Share: Previous: Parties, Shrines to Childhood and The Weekend Poll
Next: D.C. Area Makes All the Best Lists
Posted by: RedBird27 | June 22, 2009 7:05 AM | Report abuse
Posted by: starbucks1000 | June 22, 2009 7:27 AM | Report abuse
Posted by: HokieAnnie | June 22, 2009 9:53 AM | Report abuse
Posted by: cavatellie | June 22, 2009 3:42 PM | Report abuse
The comments to this entry are closed.