The Housing industry may soon see a big boost! Business Insider recently used 8 charts to make the case that next big housing boom is in the near future. Since we’re all about positive news for the housing industry, we sure hope they’re right!
Here are Business Insider’s 8 points that make the case that the next big housing boom is coming soon:
1. Millennials are about to hit the prime age to settle down. In the next few years, the big spike of 20-25 year olds in the population chart below will reach their late 20s and early 30s, and they’ll be pretty likely to start renting or buying homes.
Chart credit: Business Insider
2. Millennials are ready to move out.
With many millennials moving home during the Great Recession, there’s a large reservoir of pent up housing demand. As economic conditions improve, they will become more likely to strike out on their own.
3. Households are forming.
There’s already been a spike in household formation this year, which could lead to a rapid demand for housing.
4. Supply is back to normal.
Both rental and homeowner vacancies are back to pre-crisis levels, tightening the housing supply.
5. Foreclosures are way down. Distressed sales during and after the crisis were a big part of the spike in the vacancy rate in the chart above, and a return to normalcy on this front could also mean a healthier housing market.
6. Consumers are optimistic. There’s a bright and cheery upward trend in the number of people who are interested in buying a house in the near future.
7. Homebuilders are optimistic. Builders are also showing a sharp rise in confidence.
8. Home prices are rising. Home prices have slowly been increasing for the last few years.
Put these 8 factors together and there’s a good chance we’ll see a housing boom in the near future.