Cheap Homes in the ‘Burbs Attracting Young Buyers
We are seeing the results of a deep recession driving behavioral change and shifts in the demographic distribution of the population poised to impact the real estate market in unexpected ways. More than ever Americans of all ages are considering their options.
A study from Harvard University reports that real median household incomes across all age groups have not increased since 2000. This has the biggest implications for the X and Y generations as they approach what is their prime earning years. Spiking home foreclosures have produced an over-supply of suburban homes for sale.
After growing up in the suburbs the Gen Xers and Yers began buying homes closer to downtown Columbia with all the amenities of city life. However, the lifestyle demands of a shifting population may dictate a very different future.
All in all, there are some big changes occuring in Columbia's housing market due to altering demographics. The changing needs and demands of the huge Echo Boomer generation is being felt in different ways.
Given the reduction in wealth that the younger generations are experiencing, achieving the dream of urban living may be out of reach for them. While some echo boomers seem to be willing to give up home size to live near Five Points and The Vista areas of Columbia, it's proving to be too expensive for many home buyers.
The suburbs of Columbia, which are the areas hardest hit by the recession, may be the only places that younger buyers are able to afford. What is clear is that the growth of the economically challenged echo boomer generation will make affordable housing even more important.
I recently assisted a nice couple that purchased this move-in condition home for only $112,000
This generation has seen a great deal of financial turmoil within their own homes. They may have witnessed friends or family members forced to move back home with their parents. An advantage they have, with good credit and adequate income, is the ability to pick up on foreclosed homes or homes that have dropped in re-sale value.
All-in-all, I believe that this generation will benefit from all of the problems we have experienced recently and will take advantage of historically low mortgage rates.
I also believe the Echo Generation will renovate the suburbs of today into something more interesting. One house on every block (possibly on a corner) could become a shop or a coffeehouse. Suddenly there's somewhere to walk to, now that there's a little business right down the block.
The larger brick ranches can become two-family homes, or the extended family homes that house two or three generations who need to live together to make ends meet.
Since today's buyers have the mentality for urban amenities, I believe they will find a way. We Americans are like that.
This 1700+ square foot brick ranch home for sale in east Columbia is only $133,900
For additional information contact
Terry Edwards tedwards@sc.rr.com
www.FeaturedColumbiaHomes.com 803 920 5327
Cheap Homes in the ‘Burbs Attracting Young Buyers
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