Two Highest Impact Age Groups: Seniors & Young Adults
“Baby Boomers” and “Echo Boomers” are the two demographics of the population that are foreseen to have the greatest impact on real estate trends over the next 20 years. In a new report released by the Bipartisan Policy Center, “Demographic Challenges and Opportunities for U.S. Housing Markets,” researchers at the National Association of REALTORS®, The Urban Institute, and the University of Southern California analyze key demographic trends and their likely influence on housing and homeownership in the United States.
Why you may ask? Baby Boomers are increasing the nation’s senior population by 30 million. This shift will increase the supply of housing on the market due to the elderly selling homes more than they tend to buy.
Contrasting that trend, the “Echo Boomers” include 65 million people born from 1981 to 1995 who will increase their demand for housing inversely to the “Baby Boomers” decline.
“The Northeast and Midwest are most likely to see a large number of older home owners selling their homes to younger home owners as the baby boomers age,” says NAR Chief Economist Lawrence Yun. “This increased supply could mean additional buying opportunities for Echo Boomers. That generation will absorb 75-80 percent of the available inventory of owner-occupied housing by 2020.”