Friday, June 29, 2012

Here is an article extracted from National Association of Realtors Publication, find interest the relation to Housing Market with Echo Boomers renting vs buying...are you and Echo-Boomer?
This is something to consider!!
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Harvard University’s Joint Center for Housing Studies released its annual State of the Nation’s Housing report for 2012 and it very closely tracks comments made by NAR Chief Economist Lawrence Yun earlier this week at a CRE conference on what’s holding back the housing recovery.

The Harvard report, which always does a good job laying out in plain language what’s happening with the market, points to the increasingly strong market fundamentals and says home sales really could see serious improvement this year.
The main weakness is tepid job growth, which Yun talked about as well earlier this week. The overhang of distressed properties is also a continuing problem.
Other issues include the unusually slow pace at which young people today–the Echo Boomers—are leaving their parents’ homes and forming their own households. That’s a big missing link in home sales growth, and it’s certainly related to the weak job picture. Unless young people feel confident about getting a good job, they’re going to remain hesitant to start a new household.
The big beneficiary of the last several years has been the multifamily housing sector. It’s booming. As the report puts it, “the number of renters surged by 5.1 million in the 2000s, the largest decade-long increase in the postwar era.” More rental growth is expected.
It’s in part because of this rental growth that home ownership is poised to improve. The report includes an informative graph (see below) that shows how much more affordable mortgage payments have become relative to rental rates. At some point, renters are going to realize they’re losing money each month they continue to rent.

3 comments:

  1. In the industry I am in (Technology), we call the "Echo Boomers" you mention here "Millenials" or "Gen Y". They will comprise 50% of the workforce by 2014 and have a very different outlook on the workplace and their lives. See this very interesting video on this topic: http://vimeo.com/44124657

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    1. Thank you, for the input Byron.
      They are quite open and focus when they want to reach a goal. Do you consider your self part of this generation?

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    2. I am more Gen X but on the side closer to Gen Y.

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