More buyers will be priced out of urban cores—and the housing market in general
Young buyers and first-time buyers will start searching in the suburbs as affordable housing near city centers becomes scarce, economists at Zillow forecast.
“In 2016, we’ll start to see more people in hot coastal markets forced to move farther from the core of the city to find housing,” writes Zillow Chief Economist Svenja Gudell. “When they get there, they’ll be looking for amenity-rich suburbs — mini-cities, with walkable cores and an urban feel.”
Other housing market trends for 2016 include soaring rents, bringing the highest median rents ever, and that more low-income Americans will be priced out of homeownership.