What Will Fuel Housing Demand Growth For The Next 10 Years?

A Mortgage Bankers Association study has estimated that between 13.9 and 15.9 million additional households will be formed by 2024, making the next ten years one of the strongest periods of growth in housing in U.S. history.

In their white paper, Housing Demand: Demographics and the Numbers Behind the Coming Multi-Million Increase in Households, the MBA’s researchers conclude that the housing demand surge will be driven by Hispanics, Baby Boomers, and Millennials.  They report that household formation has been depressed recently by unfavorable economic conditions, and that improving employment markets as well as major demographic trends will create strong growth in both owner and rental housing over the next decade.

Baby Boomers are aging and began turning 65 in 2011.  It is estimated that there will be 12.3 to 12.9 million more households age 60 and over in 2024 than there are today.  Millennials will also be a key component of growth.  They are spending a longer time in school and delaying major life events like getting married and having children.  As they age they will create 4.1 to 5.1 million households.  It is also estimated that there will be 5.5 to 5.7 million more Hispanic households in 2024.

The result of these predictions is a growth rate of 1.6 million households per year which would make the next decade one of the strongest in housing in U.S. history.

Click here to read the Mortgage Bankers Association white paper.