In a recent USA Today article, author Julie Schmidt reports that immigrants will generate almost 36% of the increased demand for homes in the U.S within the current decade. That’s down from 39% in the past decade, according to new research from the University of Southern California. The decrease is in part due to the increase of native-born buyers share of demand growth.
According to Dowell Myers, director of the Population Dynamics Research Group at the University of Southern California, immigrant buyers “really filled a big hole,” in the last decade as the number of native-born home buyers lagged due to demographic trends that saw many Americans too young for home ownership.
Myers goes on to say that home ownership demand from the native-born will pick up, as the number of buyers in the 25- to 34-year-old age group expands, but demand will remain strong among immigrants. Research sponsored by the Research Institute for Housing America also indicates that foreign-born ownership demand in the current decade is projected to account for a majority of the growth in six states: California, New York, New Jersey, Massachusetts, Connecticut and Michigan.
Regarding the increase in home ownership demand from young adult native-born buyers, research reported by KCMblog in a post yesterday suggests that buyers between the ages of 18 and 34 may be ready to start buying again.
From the KCM Blog:
Last summer, the Joint Center for Housing Studies at Harvard University released a study which addressed this demographic:
“Surveys consistently find that the overwhelming majority of young adults plan to own a home in the future, but many would-be buyers have stayed on the sidelines waiting for the job outlook to improve and house prices to stop falling. But as markets tighten, these fence-sitters may begin to take advantage of today’s lower home prices and unusually low mortgage rates.”
What do you think? Have you seen an increase in interest among younger buyers and/or immigrant buyers in your local markets?