91% of all US home buying is done by those aged 20-69yrs/old, according to NAR data. In 2015, Millennials (20-35yrs/old) made up 35% of home purchases, Gen X (36-50yr/olds) bought 26%, Boomers (51-70yr/olds) 31%, and the Silent Generation (70 yrs/old) 9%. I’m no great fan of the NAR, but this makes basic sense as most homebuyers need an income to be homebuyers and most 70 yr/olds are retired and have the lowest average incomes of all the above groups.
Here’s the very big problem for residential real estate… the chart below shows that over 70% of all the population growth among potential home buyers (20 yrs/old) from 2017–>2030 will be among the 70 yr/olds (chart shows average annual growth for the two groups from 2000–>2016 (left) and 2017–>2030 (right)). This is simply unprecedented in US history.
This post was published at Zero Hedge on Aug 24, 2016.
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