The housing market throughout the country is beginning to recover, and prices are even on the increase. An important part of the recovery is the demand created through the formation of new households, something that is rising once more.
According to the article in RisMedia, figures from the latest US Census Bureau’s Housing Vacancy Survey make interesting reading, and show the steep decline seen in the wake of the housing crash is gradually reversing. For the years between 2000 and 2005, the annual rate of new household formations averaged slightly less than 1.4 million, but this figure dropped dramatically in 2008 to just 400,000. The latest figures for last year show annual household formation nearly reached a rate of 1 million.
These improving figures show quite a few different things, as they prove that more people are beginning to recover financially from the crisis, and feel in a position to consider homeownership. Young adults who had finished college but who were not financially secure enough to leave home are now being able to do so. Those who may have suffered job losses or pay cuts are now more likely to be in a better position financially and are more likely to be considering purchasing a home again.
In addition these figures are being boosted by minorities and immigrants. Figures garnered from the Joint Center for Housing Studies, carried out by Harvard University, show the number of minority households in the US is anticipated to grow by 8.7 million over the next decade. By 2023 minority households will account for seven out of ten of all new households.
New opportunities for Real Estate Professionals
These facts are creating an interesting opportunity for real estate professionals. Minority households will be looking for information on purchasing a home for the first time in a foreign country, and as such will be looking for people who are able to understand their needs. People who have not lived in the country for very long will need plenty of detailed information on areas and neighborhoods to consider, as well as information on the practicalities of buying a home in a foreign country.
Recent immigrants often need to rely more heavily on real estate professionals to avoid the pitfalls of buying a home in the wrong area, or a property that doesn’t suit their needs. Such local information can be difficult for newcomers to source, and a seasoned real estate professional could help to avoid costly mistakes.