Demographic Shifts dominating the Real Estate Market due to the Millennial and Baby Boomers
Uploaded by CaseyP on May 19, 2017
Demographic Shifts dominating the Real Estate Market due to the Millennial and Baby Boomers
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Demographic Shifts dominating the Real Estate Market due to the Millennial and Baby Boomers
Introduction
Real estate is one of world’s oldest and significantly dynamic industries as it adjusts to the present needs of the consumers. Considering that the market is highly dependent on the needs of the clients, then it must be connected to any demographic shifts. In this regard, it is important to consider the effect of baby boomers and the millennial in the changes occurring in the real estate industry. Baby boomers, born between 1946 and 1964, and millennial, 1981-1997, are two of the largest cohorts in the economy that tend to affect the performance of each industry, including real estate (Fry, 2016). Considering that real estate market is greatly defined by the existing laws and regulations, the demographical changes in the population will be reviewed from a legal perspective. This essay will argue that legal policies targeting the baby boomers and millennial have significantly influenced the performance of the real estate industry.
Demographical Analysis and Industrial Trends
To better understand the demographic shifts in the population and their impact on the real estate market, it will be critical to understand the population and present situation in the market. A recent study by the Pew Research Center shows that there are around 75.4 million millennial aged around between 18 and 34 years (Fry, 2016). On the other hand, the baby boomer population was approximated to be around 74.9 million with the age gap of 51-69 (Fry, 2016). Generation X, those born after the boomers but before the millennial, had the least population and were projected to surpass the boomers in the next ten years. Considering that the legal age of owning land or property in the U.S. is 18, then it is prudent to argue that boomers and millennial should be the primary target for real estate merchants (Miroff, Seidelman, Swanstrom, & DeLuca, 2014). While a majority of the millennial population is waiting to own a house or property, a significant number of baby boomers already own property are reluctant on selling it as they expect to recover the value lost after the economic meltdown in the previous decade. Some of the legal issues that may affect the populations are considered in the subsequent sections.
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