Housing demand is extremely high today. Lawrence Yun, the chief economist of NAR and a contributor to Forbes, says that demand will soon intensify.
The population is expected to rise within the next decade, especially among people in their 30s and 40s. This will lead to an increase in first-time and trade-up buyers.
The share of people in their 20s, however, will drop, which will lead to a flatline in the rental market.
In sum, with a population gain of 27 million over the next decade, existing home sales should be hitting approximately 6 million a year just from demographic forces – even if mortgage rates should go up to 7%.
A lack of inventory will also play a factor. The country needs 1.6 million homes, but Yun estimates that only 1.3 million units will actually be built.