Baby Boomers have been a big target in the housing market but the future will see a shift in who the future housing market will capture. According to Morgan Stanley, Millennials and Gen Z will slowly take over.

In 2019, it is reported that Millenials (those born between 1981 and 1996) will become the largest generation in the nation. If all follows as planned, Gen Z (those born between 1997 and 2012) will take over in 2034. What does these mean for the housing market? This “youth boom” which is the merging of these two generations will heighten the economy and encourage a drive for demand in housing.

“We’re going to see strong demand for housing, both multifamily and single family, over the medium to long term,“ says Richard Hill, who leads Morgan Stanley’s U.S. REIT Equity and Commercial Real Estate Debt research teams.

We can already see the effects in the housing market in many U.S. regions. Areas report bidding wars as the Millennials a forming households. Home prices across the country continue to rise due to the lack in inventory. There are a reported 22 million people between the ages of 20 and 24 across the United States that will be adding 3.6 million new households within the next five years.

“Our findings show that household formation will increase 1.7 times annually over the next five years, compared with the prior eight years,” says James Egan, a strategist on the firm’s Securitized Products Strategy team.

The areas with the change in the trend market are definitely effected in different ways. The West and Southwest are seeing a rapid change because the Millenials outnumber the Baby Boomers. This is the exact opposite for New England and the Rust Belt which have the least Millenial population.

With a new generation comes a new way of buying, iBuyers. An iBuyer is a company that uses a web-based questionnaire and home-value algorithms to purchase homes. Basically they use technology to make an offer on your home instantly. iBuyers will account for 3% of the U.S. existing home sales by 2030.

“3% might seem small in percentage terms,” says Brian Nowak, Head of U.S. Internet Research, “But given the large size of the residential market, which is around six million transactions a year and $1.8 trillion in transaction value, it means iBuyers would purchase roughly 175,000 homes in 2030.”

The U.S. housing market will see a massive change in both target market and purchasing tools within the next decade. This is great news for both single-family homes and multi-family homes.

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This is the third annual event and is held in Covington.

Kokomo Stroll

When: June 22, 2019
5PM – 8:30PM

Where: Downtown Covington
Covington, LA 70433

What: $30 Kokomo Stroll Cup, 21+

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This free concert series is a great event for the whole family.

Sunset at the Landing
Free Concert Series

Where: Riverside Park by the Bogue Falaya River
At the South End of Columbia Street
Columbia St. Landing
100 N. Columbia St.
Covington LA 70433

When: June 21, 2019
6pm-9pm

Free Admission!

985-892-1873
gottaluvcov@covla.com

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Bring lawn chairs and picnic blankets to movie night in Slidell.

Slidell Movie Night

When: June 15, 2019
8:30pm

Where: Heritage Park
1701 Bayou Lane
Slidell, LA 70458

What:

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Every year since 2000 in Abita Springs.

 

When: June 10, 2018
8 AM to 1 PM

Where:
Historic Downtown Covington / starts at Covington Trailhead
419 N. New Hampshire St.
Covington, LA 70433

What: Click Here For Pricing.
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Charmaine Neville Band Live in Bush.

Pontchartrain Vineyards’ Jazz’n the Vines Presents
Charmaine Neville Band Live

When: June 15, 2019
6:30PM

Where:
Pontchartrain Vineyards
81250 Old Military Rd.
Bush, LA 70431

What: $10 for adults and children 17 and under are free. Food and wine is available for purchase during the shows, but guests are encouraged to bring picnic dinners and lawn chairs or picnic blankets for seating.
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Enjoy good food, music games and more in Slidell.

Slidell Heritage Festival

When: June 39, 2019
4pm – 11pm

Music Lineup:
5:30PM The New Orleans Mystics –
Days of Motown
7:30PM 7 Bridges: Ultimate Eagles Experience
9:30PM Bag of Donuts

Where: 1701 Bayou Lane
Slidell, LA 70458

What: Adults, $10; $5 for kids 4-12; FREE for kids 3 and under

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Spring is not the only thing warming up this year, the National Association of Realtors (NAR) just reported that the pending home-sales rose 3.8% in March 2019 (April 2019 will be released May 30, 2019.)

“There is a pent-up demand in the market, and we should see a better performing market in the coming quarters and years,” said Lawrence Yun, NAR’s chief economist.

The Pending Home Sales Index reported its findings based on a forward-looking indicator of the contract signings which rose to 105.8 in March from 101.9 in February. Yun notes that the increase has been influenced by the influx of mortgage applications and favorable mortgage rates.

The break down by region is contrasting. In the Northeast there has been a decline in pending sales of 1.7% in March to 90.5. In the Midwest however, pending home sales grew 2.3% to 95.3 in March. The two regions with the biggest jump in March were the South which rose to 127.2 (a 4.4% jump) and in the West to 95.1 an 8.7% rise.

So far spring is looking up for the housing market and only time will tell if the selling season will remain a hot market.

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Grand prize drawing for the NHBA raffle house in Madisonville.

NHBA
Grand Prize Drawing

When:
June 1, 2019
pm – 2pm1

Where: Raffle House 2016
2016 Cypress Tree Court
Madisonville, LA 70447

What: Winner does not need to be present Click Here for More Information.

Cyclist from all over the US will compete in this race in Covington.

 

When: June 9, 2019
8 AM to 1 PM

Where:
Historic Downtown Covington / starts at Covington Trailhead
419 N. New Hampshire St.
Covington, LA 70433

What: Click Here For Pricing.
Click Here For More Information.