Gen Y to drive real estate recovery

Population growth and demographic shifts – particularly the ongoing maturation of a diverse, well-educated Gen Y – will drive improvements in the real estate market over the next 10 years, according to economists with the University of Southern California Lusk Center for Real Estate.

July 20, 2011
real estate market, housing market, generation y, generation y market

Population growth and demographic shifts – particularly the ongoing maturation of a diverse, well-educated Gen Y – will drive improvements in the real estate market over the next 10 years, according to economists with the University of Southern California Lusk Center for Real Estate.

Together, Baby Boomers and Gen Y comprise 50 percent of the population and will soon be part of the largest U.S. wealth transfer ever. About 4.3 million Gen Y residents reached age 22 in 2010. As more of this group enters the workforce over the next 10 years, they will produce a massive increase in housing demand. However, it’s likely that Gen Y will be relatively prudent when it comes to real estate investment.

Gen Y will produce market potential for every residential product except senior housing, an assertion made by the Summer 2010 ULI/Lachman Associates Survey, which found 37 percent are renters; 35 percent are homeowners; 26 percent live with parents/siblings or student housing; and 2 percent live in mobile homes.

For more information, visit: www.usc.edu/lusk

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