Millennials and a Potential Housing Shortage
Filed under: Temecula Real Estate
Recently, the National Association of Realtors has been talking about how millennials have the potential to cause a housing shortage. Why is this trend possible? What does it mean for the real estate industry?
Why Haven’t Millennials Purchased Homes?
Historically, millennials have not been buying homes at the same pace as previous generations. Instead of choosing homeownership, they have chosen to rent for a longer time before investing in real estate. The reasons vary, but many millennials saw their parents lose one or more homes in the real estate crash. So, this demographic simply doesn’t trust the idea of investing in a property.
Reality for the Future
The older millennials are now reaching their mid-30’s. At this point in their lives, they have kids, and they are ready to settle down in a home of their own. It is a great time in life to place roots in a community.
Now, buying a home is becoming more of a priority to them. The problem is that builders haven’t been building at the same pace needed to keep up with population growth. Since this age group slowed with home purchases, supply-and-demand caused builders to slow down.
These factors lead us to believe that there could possibly be a future housing shortage. I’m on the front lines, and I am seeing the same thing that the National Association of Realtors is saying. My typical clients are in their mid-30’s, with a few kids, preparing to buy their first home. This shortage is becoming a reality as we see real estate inventory at record lows.
Real Estate Will Remain Strong
This trend is one of the reasons why I think that housing will remain strong for a while. Only time will tell, but the indicators show that it is a great time to buy a home if you want to enjoy the benefits of an increase in property value.
Do you want more information about housing trends and buying your first home? Call, text, or email me anytime. I am here to help! I specialize in the Temecula real estate market, and I am happy to help you find the home of your dreams: (951) 473-0390 or [email protected]