The MBA report says household formation is beginning later as younger Americans remain in school longer and get married later, and combined with the other demographics, will create a larger demand for housing.
“As projected by the MBA, household growth will include, by race:
5.5 million to 5.7 million more Hispanic households in 2024 than in 2014;
3.4 million to 5 million more non-Hispanic white households;
1.8 million to 1.9 million more Asian households;
2.4 million more black households; and
730,000 to 890,000 more households other than the four major categories listed above.”
MBA also says by 2024 there will be 12.3 million to 12.9 million more Baby Boomer households age 60 and over, and Millennial households will grow 4.1 million to 5.1 million.
Additionally, the report says there will be 5.6 million more rental households by 2024, three million of them will be Baby Boomers headed by someone 60 or older; and Millennials, 18 to 44, will add 2.7 million more renter households to the mix. But the smaller Generation X demographic will reduce the number of renter households headed by 45 to 60 year-olds by 100,000.
However, says the report, if homeownership rates should revert to their long-term historical average over the next nine years, reversing the negative effects of the housing bust, the rental market could be reduced by up to 2.5 million units. ##
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