A new report from the Mortgage Bankers Association argues the housing market is nearing a major demographic shift. After more than a decade of demand outpacing supply, slower population growth and an aging population are expected to reduce the need for new housing, potentially reshaping forecasts for homebuilding, home prices and affordability.
Impact on Homebuyers and Sellers
According to the report, slower population growth, lower birth rates, an aging population and reduced illegal immigrant numbers are expected to result in fewer people looking to buy or rent homes over the next decade, even as builders continue adding new housing.
If that happens, some markets could end up with more homes than buyers, giving more choices to those looking to buy and making it harder for sellers to ask higher prices after years of seller favorability, especially in the post-COVID era.
States including Texas, Florida and Arizona, where construction has accelerated, could see softer prices if supply continues to grow. In contrast, parts of the Northeast and Midwest, where new construction remains constrained, may continue to experience stronger price appreciation.
Original reporting: Fox News (HLL/CB) — read the source article.
