Future trends and possibilities for the housing market?
These are trends (some are already occurring, others may/may not happen) that we see and hear in the news more and more nowadays. Has anyone looked into these factors and see how it may affecting the housing/rental markets at a macro level? And then again it may not matter as real estate is as they say 'local.'
Already occurring:
1. 10,000 people in the US are turning 65 each and every day. This is why the Medicare Advantage and Medical Supplement businesses are booming big time. With this influx of older population we also see 55+ housing and nursing businesses growing. So, all of these people will eventually be moving out of their older homes that will need major renovation. Most likely than not, these homes will be sold in doves.
2. Low and Negative interest rates are a reality in the US and around the world. We most likely will see this trend continue as the world economy intertwines deeper. This means cheaper credit to purchase homes and maybe lower intensive to rent.
3. QE has helped the equities market after 2008 and created record levels for NASDAQ, S&P and DOW JONES. How long will this trend continue and what happens when we see this artificial uptick reverse trend? How many salaries employees who bought their homes with credit survive another round of massive prolonged layoffs.
Most likely will/ will not occur:
4. Millennial will manage to pay of their student debt and outgrow MFH and apartment complexes. Will they want to settle down and start a family by purchasing cheaper homes?
5. In the next economic downturn how many REI will be underwater and never want anything to do with this industry? Heard a podcast recently where the speaker said 80% of members here on BP acquired at least 1 investment unit in the last 12 months.