As the US housing market continues its strong rebound, experts are counting on a better year ahead. The Counselors of Real Estate® organisation (CRE) recently released a report highlighting major factors that will shape the US housing market in 2015.
Below we list the top five.
Energy production and consumption will have a huge impact on the real-estate sector, perhaps the maximum. Areas with high energy production are now seeing a job boom, which is in turn improving the income. Increased income is one of the most important aspects counting toward home ownership. Therefore, CRE puts energy production on top of the list.
The jobs and employment sector of the US has been closely watched by experts. The country is poised to add 200,000 to 250,000 jobs every month and improve 2.8% annually. A better job scenario could boost sales of multi-family and single-family units. Also, with employers adding more jobs, CRE expects commercial real estate to experience a boom.
3. The Millennials
Millennials (people aged between 18 and 33) have been the most-discussed demographic when it comes to real estate. The Generation Y represents 27% of the country's population and their lifestyle ("work, live, play") is bound to affect the property market. A large number of people in the cohort currently carry student debt, marry later, and choose to rent rather than buy and prefer smaller homes. Their preferences have already shown effects on the market and that will continue.
Construction of more medical care units and healthcare centres is expected in the coming year as more Americans become part of the Affordable Care Act. CRE expects more pharmacy chains and health clinics and senior citizen care centres popping up as well.
With the emergence of e-commerce and availability of advancing technology, the property market of the United States is bound to receive more interest from foreign countries. Political issues like the strife in the Middle East and volatility in Ukraine could put a dampener on the potential of globalisation but the invention of new technologies like 3D printing could definitely bump up manufacturing and construction.
Read the full report here.