THE LONGER TERM VIEW: WHY REAL ESTATE INVESTMENT MAKES SENSE

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Those that are currently investing in US housing should feel confident. There are four reasons why this is a good decision despite the ups and downs on market prices.

Strong job growth

The US economy has paved the way for around 3 million private sector jobs over the past year alone. This could only mean that there could be more than 750,000 new jobs in the 25- to 34-year old-age group which is the segment for first-time homeowners. This is the highest in about 15 years. More jobs mean higher incomes leading to an increase in consumer confidence and more demand for homes

Decrease in inventories and an increase in pent-up demands

The level of inventories for new and existing homes and the percentage of households are at or near-15-year lows. Around 1.5 million new households have been formed in the past year. More than 30 percent of 18- to 34-year-olds live at home which means there is an increase in pent-up demands. Housing demands will surely increase towards 1.5 million units two or three years from now

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Keith Kaplan

CalBRE #01933707
Sothebys International Realty
9255 Sunset Blvd.
West Hollywood, CA   90069

keith.kaplan@sothebyshomes.com

310-646-7791

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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