Three Reasons Why Housing Demand Is Likely to Remain Strong

Your Guide to the Housing & Mortgage Markets

"HOUSEHOLD HEADSHIP" RATES ARE SOARING: HERE'S HOW IT IMPACTS HOUSING DEMAND
 
1 - "HOUSEHOLD HEADSHIP" RATES ARE SOARING
The number of individuals who are forming their own households has soared in recent years, and the trend is likely to continue according to a recent study conducted by the Federal Reserve. Click here to view the full study. This has resulted in "several million" new households being formed in recent years, which has contributed to the huge demand for housing. This is one of the main reasons why rents and house prices have increased.

2 - FEWER ROOMMATES
Another trend that has become apparent in recent years is that relatively fewer adults are living with roommates and more are living alone. This is also contributing to the increase in housing demand.

3 - STRONG JOBS MARKET
The jobs market is the strongest it's been in over two decades with over 11 million job openings. Inflationary pressures and a tight labor market are causing employers to increase wages. This is also contributing to the increase in housing demand because people tend to buy houses when they have higher-paying jobs.

NUMBER OF THE WEEK

52%

That's how many children aged 18-34 are still living with their parents (these adults will eventually need to buy or rent, which will increase the demand for housing)

[credit: Brian Reno, BDR Mortgage Capital | source: Momentifi]