The U.S. housing market could get a major boost this year, specifically for single-family homes—especially among first-time buyers. Here’s why.
I’m guessing here. My forecasts aren’t any better than anyone else’s, so don’t trade on this. But my gut is telling me that the U.S. housing market could go ballistic this spring, specifically for single-family homes—especially among first-time buyers.
A few reasons:
1. Everyone sees that the zero interest rate party is coming to an end. If you’ve been waiting to borrow, it’s getting close to “now or never” time. Fear of missing out (what the kids call “FOMO”) is as powerful a motivator as anything.
2. Demand is pent-up, and pent-up things eventually get un-pent, sometimes all at once. The number of people between ages 35 and 39 is critical to household formation, and we are currently seeing an uptick in this demographic category, back to prior peaks.
3. The notion that millennials want to stay home forever is not accurate. They’re ready to bust out, and rental prices are comparably high in several key regions. Read More