Serving Bellingham & Whatcom County
Serving Bellingham & Whatcom County
Coldwell Banker Bain
Tom DeRose :: Wireless: 360-220-9355 :: Email: tderose@coldwellbankerma.com

First Time Buyers and Investors Lead Home Sales Part 4

Posted on January 4, 2012
Blame the Real Estate Recovery on the Echo Boomers
Long-term real estate trends are strongly influenced by demographics and the buying cycle. New generations buy certain kinds of real estate as they age.
 
Apartment Rentals
The leading edge of the echo baby-boom generation, born from 1976 to 2001, will be moving into apartments and stimulating the demand for rental properties. As you can see in the graph below, this cycle began in 1998, took off in 2002, and will peak around 2015. Because there is very little new construction, rental properties will come from investors buying owner-occupied homes and turning them into rentals.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Starter Home Buying
The demand for starter homes by baby boomers made for one of the hottest real estate markets in the 1970s and 1980s. As we can see in the graph below, the demand for starter homes by the echo boomers began around 2009 and will continue to be vigorous for quite some time. This market activity was curtailed by the poor economy in the past few years, but seems to be moving ahead and the buying cycle suggests.

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