October 1, 2020

WE'RE GONNA HAVE TO IMPORT MORE CONSTRUCTION WORKERS:

Why the real estate boom could keep going for years (Dion Rabouin, 10/01/20, Axios)

There are a few big factors that could buoy the housing market for years to come, says Jonathan Woloshin, head of U.S. real estate at UBS Global Wealth Management.

Older millennials, a historically large generation, are reaching their late 30s -- an important marker, as there has been a persistent 20-percentage point gap between the percentage of homeowners under 35 and those 35-44.

Homebuilders have been slow to erect new housing since the global financial crisis, limiting supply.

And yes, "COVID put some extra juice in the market," Woloshin tells Axios.

But what's really driving things is a new "migration" out of major population hubs like New York and San Francisco and into lower-cost suburban areas and smaller, more affordable cities like Phoenix, Salt Lake City, Las Vegas and Boise, he says.

The bottom line: Even though prices have risen, the record-low mortgage rates have brought down the monthly bill new buyers will see in many cases, Tendayi Kapfidze, chief economist at LendingTree, tells Axios.

Posted by at October 1, 2020 7:31 AM

  

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