52% of adults aged 18 to 34 are still living with their parents. Eventually these young adults need to buy a home or rent which will increase the demand for housing.Raleigh Mortgage Broker & Certified Mortgage Advisor, Kevin Martini
HOUSEHOLD HEADSHIP RATES ARE SOARING
The number of individuals who are forming their own households has soared in recent years, and the trend is likely to continue according to a recent study conducted by the Federal Reserve (e.g. The Remarkable Recent Rebound in Household Formation and the Prospects for Future Housing Demand | published May 6, 2022). This has resulted in “several million” new households being formed in recent years, which has contributed to the huge demand for housing. This is one of the main reasons why rents and house prices have soared and why new construction has increased to its highest levels since 2006.
A new development or new trend that has become apparent in recent years is that relatively fewer adults are living with roommates and more are living alone. This is also contributing to the increase in housing demand.
STRONG JOB MARKET
The jobs market is the strongest it’s been in over two decades with over 11 million job openings. A tight labor market and inflationary pressures are causing employers to increase wages. This is also contributing to the increase in housing demand because people tend to buy houses when they have higher-paying jobs.
Kevin Martini | NMLS 143962 | Certified Mortgage Advisor and Producing Branch Manager | Martini Mortgage Group at PCL Financial Group (powered by Celebrity Home Loans, LLC NMLS 227765) | 507 N Blount St Raleigh, NC 27604 | (919) 238-4934 | www.MartiniMortgageGroup.com | Kevin@MartiniMortgageGroup.com | nmlsconsumeraccess.org | Equal Housing Lender