The Urban Institute recently published a paper entitled “Demographic Challenges and Opportunities for U.S. Housing Markets” that explores the key trends and challenges within the housing market for seniors and echo boomers, or young adults. The research paper finds that over all, the senior population will drastically affect both supply and demand within the housing market; as seniors age and move out of their homes, housing supply will increase, which will also increase the demand for new affordable housing designed specifically for the 65+ population. The paper also describes the numerous opportunities that young adults represent for the housing market, yet stresses the struggles many are facing in the current economy in terms of household formation and homeownership. In addition, the impending substantial sell-off of senior homes will likely not occur in markets where young people are ready to become homeowners. All in all, the Urban Institute suggests that this fluidity and uncertainty means that decisions about U.S. housing policy, particularly regarding the finance system and tax incentives for owner-occupied and rental housing, stand to have a potentially large effect on the shape of the future U.S. housing market.
Click here to read the Demographic Challenges and Opportunities for U.S. Housing Markets report.
