While the housing market has made some significant strides since 2013, household income growth has yet to fully recover from the effects of the recession, according to a new housing report released by Harvard University’s Joint Center for Housing Studies.
According to the report, many young Americans are saddled with higher-than-ever student-loan debt and falling incomes and many continue to live at home with their parents.
Researchers are hopeful for a turnaround in this segment of buyers as the number of households in their 30’s is expected to increase by 2.7 million over the coming decade, which should increase the demand for new housing.
The report notes that the large Millennial generation will eventually make their mark in the owner-occupied market, just as they already have in the rental market, where demand is strong, rents are on the rise, construction is robust, and property values have increased by double digits in 2013.
Still, a key factor inhibiting Millennials increasing their presence in the housing market is stagnant income growth. Also, the report notes that another important factor for breaking into home ownership is how potential reform of government sponsored enterprises (GSE’s such as FHA, Fannie, and Freddie) will affect the cost and availability of mortgage credit for the next generation of homebuyers.
Let the professionals at the Bandy Team help you buy or sell a Denver home, contact us for a no-obligation consultation. If you’re thinking about buying a Denver home, we can show you some terrific homes in Denver, including property in Stapleton and real estate in Lowry.
Until next time,
The Bandy Team of RE/MAX Professionals