We've all heard the continued bad news in the housing market this month. Housing starts and permits remain weak, foreclosures continue to rise, new jobs are non-existent and according the US Census Bureau, we've added the least amount of households since 1947 (March 2009 - March 2010). Common knowledge also tell us that families are still forming, kids are still graduating from college and some couples are unfortunately divorcing. A recent article covering last week's ULI conference in Washington D.C. reminded me that we're also experiencing a unique situation with our population. Baby boomers (age 45-65) and their offspring, Gen Y (age 18-32) together account for half the U.S. population (150 million people). These two groups are at opposite ends of the home buying cycle. During a briefing at the conference last week, Maureen McAvey, ULI's executive vice president of initiatives said, "Both of these groups represent a lifestyle change, and those lifestyle shifts will spark demand for alternative types of housing. Both groups embody market preferences that break from recent past and pre-recession expenditures." To read the entire article "ULI Fellows Identify Forces Shaping the New Normal for Real Estate" from Builderonline.com click here.
There currently is pent up demand for housing, along with new, alternative demands for housing. We just need to continue to be patient, and our industry will come creeping back with a fresh new look built on its foundation of delivering quality products to all market segments.
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