Jun 25 2007 11:12AM | Permalink | Email this | Comments (0) |
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In the magazine last month, I wrote about how echo boomers would be determining the future of the remodeling market. The fear has been that this downturn in the housing market would convince them that housing is not a good investment, much like the dot-com crash of earlier this decade caused Generation X to see the stock market as a risky endeavor. That attitude has been largely credited for our heavy investments in our homes.

In her blog for CNBC.com, real estate reporter Diana Olick points out that "household formation" is down 70 percent so far this year, according to the existing home sales report that the NAR released today.

According to the people Olick talked to, that's because echo boomers are choosing to pass on buying homes right now. If that trend holds true, it could be very bad news for the industry and a sign that the recovery is not coming any time soon.