New Face of Housing

We found these demographic housing trends and projections fascinating! Our country and our real estate market will change in profound ways in the coming years. Read on for excerpts from "New Face of Housing" from Builder Magazine:

A changing population will require new thinking about where and what you build.

• The population in the U.S. will continue to grow—adding another 100 million people by 2040. It is expected that, between now and 2025, 85% of net household growth will consist of childless households. Households without children are the largest group even now, comprising nearly 70% of the total; a subset of that number, married couples without children, stands at about 28%. The number of households made up of married couples with children: 21%. These statistics should make you think twice about who you are building for and marketing to!

• Whether you call them Gen Y, Echo Boomers, or Millenials, the group born between the years 1981-1999 is poised to change the face of housing in this country. This cohort will start buying their first homes within the next few years. If they buy at the rate that generations before them have, it is estimated that "there will be more first-time home buyers in the market in 2013-2018 than ever before."

• In 1978, 60% of college graduates were men--today, the reverse is true. And, women are now the majority in the workforce. By 2015, it is predicted that WINKS (Gen Y women with incomes over $50,000 a year and no kids) will dominate the urban landscape. Winks prefer urban or "urbanite" areas for both home and work, with the option of walkability or easy proximity to transit. Even more important, they say they are willing to pay a premium for it.

• Minorities will be the new majority in the U.S., and many of them are forgoing settling first in so-called gateway urban areas and heading right to suburbia. In the not-too-distant future, Latinos will make up 40% of all first-time home buyers.

• A survey of buyers that asked about the most important factors when choosing a new home showed that 9 of the top 15 are what might be considered green concerns. These include energy savings, indoor air quality, and pedestrian-friendly locations.

• Take into account decreasing household sizes when designing new product.

• Know that suburbs are still very important (no matter what urbanists say), but they need to be reconfigured with gathering spaces, shopping, employment, and more.

• The most critical imperative (and perhaps the most difficult?) "Figure out what women want..."

By: Denise Dersin
Editor in Chief
Builder Magazine
August 2010 Issue