The concept of homeownership remains a central tenet of the American Dream, with many viewing it as a significant life goal. Recently, during a conversation with acquaintances, one individual expressed the belief that people would eventually divest from tangible assets like homes due to the complexities of maintenance and invest everything in stocks and other avenues. This raised concerns about the potential depreciation of home values.
While initially dismissing it, a recent survey on bankrate.com prompted me to share some intriguing findings that challenge this notion.
Survey Findings: In a survey exploring the achievement of the American Dream, 74% of respondents believed that owning a home was synonymous with realizing this dream. This highlights the enduring desire for homeownership among a significant portion of the population. Moreover, a specific focus on Millennials and Gen Z inquired about their intentions regarding homeownership.
Remarkably, 95.5% of respondents from these generations expressed their intent to buy a home eventually. Given that Millennials and Gen Z constitute 42.55% of the current population, it suggests a substantial pool of potential homebuyers eagerly awaiting their turn in the market.
Critical Analysis and Extrapolation: Let's consider a hypothetical scenario for analysis:
Assume older generations, starting from Gen X, already own homes and won't participate in the market actively by buying new ones. Their participation is limited to selling their existing homes.
Speculate that half of the entire Millennial and Gen Z population already owns homes, contributing no additional demand to the market.
Under these assumptions, 20.8% of the total population plans to buy homes in the future. On the other hand, older generations, comprising 45.88% of the population, might sell homes but won't contribute to new demand as per our assumptions.
Do half of Millennials and Gen Z already own homes, or is there potential for more demand beyond our estimates?
Will older generations refrain from buying new homes when selling their existing ones?
Can the construction of new homes offset the current supply-demand imbalance?
To halt the escalation of home prices, it is crucial for supply to outpace demand significantly. Today's analysis prompts further questions about the intricacies of the housing market, and it remains to be seen how various factors will shape the future landscape. If you have additional questions or would like to discuss further, feel free to reach out. I look forward to providing more insightful content in the future.
#시카고복덕방#리얼터#리얼터한상철#한인리얼터#시카고한인리얼터 #시카고#일리노이#일리노이한인리얼터 #시카고리얼터#한인부동산칼럼 #일리노이리얼터 #부동산#한인부동산#부동산중개인#미국#Realtor_SangHan #realtorsanghan #realtor #realestateagent #help_everyone_live_in_a_better_home #chicagokoreanrealtor #selling #investing #Chicago #illinois #realestate #Residential #residentialbuilding