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Mortgage Bankers Association Predicts 10 Year Housing Demand Surge


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A recent data report released by the Mortgage Bankers Association forecasts that housing demand in the next decade will be stronger than almost any other time in US history. The prediction is that between 13.9 million and 15.9 million new households will be formed in the US by 2024.

The report further states that Hispanics, baby boomers and millennials will be driving the surge in new households. The MBA says that baby boomers older than 60 will lead the surge in demand. MBA economist Lynn Fisher was quoted as saying that the boom in demand will come after years of lower than normal household formation due to unemployment and what she calls, “a lull in the growth of the working age population.”

She’s further quoted as saying, “When it comes to starting new households, age 35 is the new 25, as younger Americans are spending a longer time in school and delaying major life events like getting married and having children.”

“Let’s not forget simple economics behind supply and demand. When there are surges in demand, prices and the value of the product increase substantially. We’re already seeing this locally in real estate with some of the news and statistics regarding housing sale prices in DC neighborhoods like Congress Heights and Anacostia,” said Gerard DiRuggiero, Principal Broker of UrbanLand Company. “We continue to see aggressive pursuit of desirable luxury properties and affordable properties. It’s still very common to see multiple offers on listed homes, sales prices being ‘bid up’ and other factors that show this increase in demand already occurring.”

The full published report is available here.

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