Expected Trends in Home Building:

Massive demographic shifts are redefining the nation’s economic landscape as the population continues to grow. According to the Census Bureau.   At the same time, millennials are starting to hit their prime home buying years. The median age for first-time home buyers is between 22 and 32, an age group that currently encompasses roughly 4.4 million people. Coming up right behind them are the 26- and 27-year-olds who will hit their home buying stride in the next six years or so and that group is 4.8 Million strong. That means entry-level homes, which are already hard to find, may become even scarcer as first-time buyers continue to pour into the market.

 

“There is going to be a massive influx of would-be first-time home buyers,” says Hedgeye Housing analyst Josh Steiner.  As a result, “we could see an extraordinary housing bull market” by 2022.

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On a national level, most economists agree that construction starts, prices and sales for residential homes will continue to rise through 2020. According to the National Association of Homebuilders (NAHB), total housing starts of both single-family and multi-family housing are expected to increase through 2021 and beyond. The organization predicts growth from 1.24 million starts in 2019 to 1.29 million for 2020 to 1.32 million in 2021. NAHB predicts new and existing home sales to continue will rise through 2021 as well.  All of these trends bode well for our firm here at Panacea Homes.