Millennials, minorities will drive housing market in next decade, Harvard Housing Study says
The number of households led by people in their 30s is projected to increase by 2.7 million in the next ten years.
By 2025, minorities will make up 36 percent of all U.S. households and 46 percent of those aged 25 to 34, thus accounting for nearly half of the typical first-time homebuyer market, according to the State of the Nation’s Housing report by the Joint Center for Housing Studies at Harvard University. The number of households headed by people in their 30s should increase by 2.7 million over the coming decade, which should boost demand for new housing, the study says.
The study also highlights the ongoing affordability challenge facing the country, as cost burdens remain near record levels and more than 35 percent of Americans spend more than 30 percent of their income for housing. Fifty percent of renters are cost burdened and 28 percent are severely cost burdened (meaning they spend over half of their income for housing).