Really Different Real Estate

Joy Davis, Economic Development Specialist

The typical housing progression for most is going from living at home with the family, to finding that first apartment, to possibly a condominium or larger apartment as the career begins to take off, to finding a home with a yard in a good school district, back to a condominium or other downsized empty nest or retirement community.

The largest generation of our time, the baby boomers, has had profound effects on the housing market as its members have moved through this cycle of housing. Currently, the youngest baby boomers have kids in college, while the oldest have already achieved retirement age and are moving into the empty nest, smaller home or retirement community.

Who will buy their homes with yards in the good school districts?

The Generation X and Generation Y people, of course! But here’s the issue: Neither of these two population segments comes close to the numbers of the Baby Boom Generation. It is projected the ratio of sellers to buyers in the real estate market will be close to 1:1 by 2030. Compare this to the ratio in the housing boom, when it was four buyers to every seller.

What does this mean?

In short terms, our housing market is forever changed.

Is that bad?

No. It will just be different, and we all must be aware and prepared for this challenge, so it becomes a true opportunity for our community to thrive.