By Peter Ricci
You know the message is good when even the Wall Street Journal reports it – real estate in the U.S. has been doing pretty good in 2012. Recent government reports were notable for their optimistic tone, home values are showing their best performance in years and several of housing’s more foundational elements have also been strengthening.
As housing slowly recovers, though, what will that recovery look like? And how is housing changing, as its signs improve? We’re taking a look at three of the more transformative aspects of housing today, and how they will impact housing’s future.
- It’s a Multigenerational Thing – From 2007 to 2009, Pew reported the largest increase in multigenerational housing in modern history, and with the Baby Boomer population aging in broad and dramatic fashion and more and more recent college grads opting to live with their parents, chances are that trend will only continue in the coming years. Indeed, multigen families have gone up by 30 percent in the last 10 years, and as we’ve reported, builders are beginning to take notice.
- Out with a Bang? Pension System Overhaul – The good folks at Realtor Mag pointed this one out. Public employee retirement systems are undergoing some radical changes across the country (especially here in Illinois), and the way those changes pan out will impact not only how social services function at the state level, but also how retirees handle their finances – both huge factors for individual housing decisions.
- The World is Flat – Economically, the world is flatter now than at any time in human history. Such interconnectivity links all the world’s top economies, and though real estate is, if anything, a hyper-local industry, it is also uniquely impacted by greater economic trends. Employment levels, interest rates and personal finances all go into the purchase of a home, and all are impacted by the global economic scene, whether its the Eurozone, China or LIBOR, the London-based interest rate that directly impacts U.S. mortgage rates.
So whether it’s local retirement packages, international interest rates or housing demographics, there are more nuances now than ever in our real estate markets. What a great time to be a Realtor!