November 15, 2013

MORE HOUSEHOLDS ON THE WAY

by Jodi Summers

A lot of people needed to get out of the house. The economy is in forward motion, there has been a positive turn in U.S. household formation and a rising demand for all types of housing, including multifamily and single-family rentals…but a lot of people who should be forming their own households are not.

Think of a house as one or more people who live in the same home. Before the housing bust, an average of 1.1 million new households were formed each year in the U.S.

Household formation plummeted during the Great Recession, as young adults moved in with their parents and older adults moved in with their children, people took in roommates. From the first quarter of 2008 to 1Q 2011, around 450,000 households formed each year. 2011 went back to the norm of 1.1 million and new household formation swelled to 2.4 million in 2012.but there’s more to come.

Pontificators believe there is still an estimated 2.4 million missing households that should be forming in the near future. For more than two years, housing permits, housing starts, resales and new single-family sales have been on the rise. Only household formation is still lagging.

Job growth is the primary driver for household formation and the steady employment growth of the past three years is another impetus for new household formation. Young adults between 18 and 34 years old are itching to get out on their own and start living their lives.

“You’re just seeing a lot more people getting reengaged,” said Sterne Agee analyst Jay McCanless. “Housing demand, whether its rental or ownership, is a positive indicator.”

Grow up. Go forth. Get on with your life. Good luck.

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http://trends.truliablog.com/

http://www.socalmultiunitrealestateblog.com/?p=2462

http://www.inman.com/2013/06/24/experts-doubt-surge-in-mortgage-rates-will-derail-housing-recovery/#sthash.tIYOmxTO.dpuf

http://www.inman.com/2013/07/24/missing-households-represent-big-source-of-pent-up-demand/

http://www.housingwire.com/news/2013/07/15/conditions-are-ripe-household-formation

http://customerrespect.com/blog/wp-content/uploads/2012/06/class2012.jpg

http://4.bp.blogspot.com/-4EWg3-jkD18/URJ6GvBGF1I/AAAAAAAAAAY/TOTYWvBAKAs/s1600/Pezes.jpg

http://11-ftc.jit.ph/images/home-image.jpg

Join the conversation! 2 Comments

  1. A fully occupied, 22-unit multifamily property located at 316 San Vicente Boulevard in Santa Monica recently sold at a cap rate of 3.1 percent, which is the lowest cap rate for a multifamily property sold in 2013 in Santa Monica, according to Costar records.

    Built in 1955, the property includes subterranean parking and a pool as well as hardwood floors and dishwashers in all the units. It is also just three blocks from the ocean and situated on prestigious San Vicente Blvd.

  2. sitemap…

    Jodi Summers = Multiunit Real Estate…

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With more than $100,000,000 in listed inventory, Jodi and the SoCal Investment Real Estate Group know finance, rules, regulations, procedures and methods. We are accurate, knowledgeable, timely and aware of how government shapes the cities of Southern California. A New York native, Jodi grew up working in the family business - marketing, Madison Avenue style. Childhood math quiz questions calculated demographic and psychographic percentages or analyzed the allocation of adverting dollars. Word games were for devising slogans. “My marketing and communication skills have proven to be a true gift when it comes to promoting real estate,” observes Jodi. “And I am consistently able to get an exceptionally high price per square foot for my sellers.” Discipline (Jodi holds a Black Belt in Tae Kwon Do), organization, motivation, excellent communication skills and knowing & satisfying the needs of her clients have been her essentials for running a successful business. A passion for investment real estate explains her emphasis in asset-yielding properties.

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