This is a quote from today’s WSJ: “In a shift, new households are overwhelmingly choosing to buy rather than rent. Some 854,000 new-owner households were formed during the first three months of the year, more than double the 365,000 new-renter households formed during the period, according to Census Bureau data. It was the first time in a decade there were more new buyers than renters…”
This is a great sign b/c millennial renters have been sitting on the sidelines since the great recession. This surge in demand will likely prop up the housing market (at least on the lower end) for some time, assuaging fears that we’re in a bubble.
The WSJ Article, “The Next Hot Market – Starter Homes,” also pointed out that builders are again developing outlying areas that crashed hardest during the meltdown (Inland Empire in SoCal, and the Central Valley in NorCal), and also building much smaller spec homes as “starters.” First time buyers accounted for 42% of the market so far this year, up from 38% in 2015, and 31% in 2011.
These stats do not bode well for markets like Oakland and Berkeley where there are very few “starter homes” but they certainly bode well for anyone in areas with room for growth.
(please email us if you’d like a copy of the full WSJ article)
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