We discuss the week's housing news in this video focusing on the Housing Market Index, MBA Mortgage Applications with Housing Starts and Permits.
Millennials under 30 not buying homes in Sacramento compared to the 1980s. We have seen this trend in all the economic data that Millennials are getting started later in life with the home ownership route compared to the numbers of the previous generations. This implies a couple of things, a) when Baby Boomers move to retirement facilities or pass away, there is going to be a boatload of housing inventory on the market in most cities, and b) there is a pool of future buyers in Millennials. The problem that I see for the Housing Market is that the Baby Boomer generation is vastly larger than the Millennial generation in terms of raw numbers. This will ultimately put downward pressure on the housing market during this transition and demographic rebalancing process. Something to think about for a prospective real estate investor over the next 20 years.