With 2016 coming to a close, the time has come to look ahead to some of the essential trends that will impact the housing market in 2017.
Millennials making moves
This past year, a record number of millennials hit the housing market, purchasing starter homes in cities and suburbs across the country. However, in 2017, these younger buyers are poised to set their sites higher, according to MarketsandMarkets. Over the next 12 months, real estate experts expect members of this generation to seek out more expensive properties, as many finish paying off student loans and move up the career ladder. Plus, lower interest rates and improved economic conditions make the prospect of homeownership seem more likely for millennials, many of whom struggled to find their financial footing in the early 2000s.
Generation Z in the rear view
Millennials aren't the only demographic analysts expect to make major housing moves in 2017. Buyers belonging to Generation Z – which includes individuals born during the mid-1990s and late-2000s – will also be scanning real estate aggregration sites for property throughout the next year. Though most will still be a too little young to actually pull the trigger on a new home in 2017, experts believe Gen Zers hold more traditional homebuying mores than their predecessors and will enter the market sooner than most think.
Affordability and labor scarcity still issues
Even as these new buyers look for homes, construction crews are expected to struggle when it comes to staffing, Curbed reported. In 2016, home builders had difficulty finding crew members, leading to a record number of openings in the construction field. This will remain a long-term issue throughout 2017. As a result, home prices may continue to rise. Though, some state governments may step in to address the problem.
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