The number of wanna-be homeowners combined with low inventory and the smaller pool of homeowners intending to sell in the next five years raises concerns that price appreciation in certain markets could become overheated.
Although current conditions seem to push home ownership further away, a Gallup poll of U.S. adults found some optimism as 49 percent who do not own say they will buy a home within the next five years.
Most non-homeowners aged 55 and older do not plan to buy a houses in the near future, but 58 percent of adults aged 35 to 54 expect to buy within the next five years, and 52 percent between 18 and 34 intend to be home buyers. An additional 31 percent of 18 to 34 year olds plan to be homeowners within the next 10 years, leaving 14 percent of this age group who are not thinking about buying a home during the next decade.
The buying intentions of Southern residents within the next five years exceed the national average, while Eastern residents’ intent is below average. The Gallup results indicate that demand may not keep up with supply as more homeowners plan to buy in the next five years than there are homeowners planning to sell. Sixty-four percent of homeowners do not think they will sell in the foreseeable future.