We are now ramping up for what should be a busy year in real estate. Why? Demographics.
From 1970-2007, an average of 1.145 million homes were built per year. From 2008 to 2022, the number of homes built per year fell to 733,000 units. On top of that, in the 1980s we had another "baby boom." Those babies (the Millennials) the majority of Millennials reached the age of 35 in 2022 and equates to about 72 million potential homebuyers entering their prime home buying years.
So, for the next 10 years (at least), the demographics and data show that housing demand will
continue to outpace supply and it will be nearly impossible for home builders to fill the gap. Prices will keep rising. Thus, the “Investment Hack for 2024” is to buy real estate. It doesn't have to be the perfect deal, and don't worry about the rates if you can afford it and you like the house--pull the trigger. Supply and demand will push prices higher.
Side Note Regarding Interest Rates: I read that every 1% drop in interest rates equates to an additional 5,000,000 more buyers being able to afford to buy a home. To me, that means there are a lot of people who will be buying homes as rates come down. More buyers means more competition. Our best advice to clients thinking of buying is “buy now.” In fact, with a point prepayment, there are several mortgage options below 6%.
