Nearly 16 million new households are expected in the U.S. housing market by 2024, which Mortgage Bankers Association economists said should lead to much greater demand for both renter- and owner-occupied housing. MBA Vice President of Research and Economics Lynn Fisher indicated at the MBA Annual Convention and Expo, “With an average of 1.6 million additional households per year, housing market growth over the next decade could be among the strongest the U.S. has ever seen. Just the sheer change in the number of people are driving the creation of new household formation.”
Recently, the MBA released a research paper, Housing Demand: Demographics and the Numbers Behind the Coming Multi-Million Increase in Households, showing the housing demand surge will be driven by Hispanics, Baby Boomers, Asian-Americans and Millennials. The report said household growth will include 5.5-5.7 million more Hispanic households in 2024 than in 2014; 3.4-5.0 million more non-Hispanic White households; 1.8-1.9 million more Asian households; 2.4 million more African-American households; and 730,000-890,000 more “other” households, including Asian-Americans. Growth will be driven by Baby Boomers, with 12.3-12.9 million more households age 60 and over in 2024 than there are today. Millennials will also be a key component of growth raising the ranks of households age 18 to 44 by 4.1-5.1 million.
Source: Mortgage Bankers Association