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