Counselors of Real Estate — Rentals to Remain Strong in 2016–17
A recent report forecasting issues in the residential real estate market shows that multifamily housing and rental property will be strong sectors as millennials and baby boomers remain a solid force in the market.
The Counselors of Real Estate, an invitation-only group of 1,000 members, issued three primary predictions for 2016–17.
Generational issues: While there are now more millennials in the real estate market than baby boomers, both groups exert a considerable influence. With the number of retirees increasing and more millennials choosing to live at home with their parents due to low income, the counselors believe that the market for multifamily housing will grow and that there will be an increase in renting over home ownership.
Experiential living: The counselors predict a continuing trend toward people concentrating in urban cores, where their lifestyle will include a full “experience” of shopping, transportation, dining, work, and other amenities nearby.
Affordability concerns: With incomes stagnating and home prices rising, the rental market should remain viable. Strict credit requirements for home loans also are turning many to the rental market, according to the counselors.