If you know me you know I’ve been talking about a tsunami of housing demand swelling up due to our housing starts being at record lows…..well, here’s ONE more testament to support my theory…banks are holding onto more than 3 million foreclosed homes that they have not yet put on the market with millions more facing foreclosure. With such a large supply of housing–particularly in several states–we raised the question of how these might be absorbed.
Enter the Echo Boom.
If you thought Baby Boomers revolutionized culture, consumerism, and lifestyles with the sheer size of their generation then you understand the impact Echo Boomers will have on the housing market. The Echo Boom, also called Gen Y or the Millennials, are those born between 1980 and 1999 , and they outnumber the Baby Boom generation.
The oldest Millennials are in their late twenties and just turning 30 this year. They are prime first-time homebuyers who are driving today’s marketplace and there are millions following them in the years to come. The youngest Gen Y’er is still only 11.
In fact, the Echo Boom is already leading us out of the latest housing crisis and towards the next Housing Boom. It’s not something you hear much about in the media these days, but a look over the horizon forecasts a shortage of housing supply in the longer term–something we’re already seeing in the Washington area.
As Boomers retire and live longer and Gen Y grows their own families, the demand for housing will only increase. How that demand is shaped may look a bit different from the suburban sprawl that took hold in the 50’s and 60’s. Gen Y will approach family and community with their own style or urban and suburban living, but there is no doubt that the next wave is coming. Thank you Tony Hain http://tinyurl.com/ykawgcc 🙂