For the next twenty years in the housing market echo boomers determine how the future will play out. It is a panel of experts in the real estate industry who feel this is how the recovery will play out.
For those who are unfamiliar with the term echo boomers, it refers to the demographics of those who are today between the ages of 17 and 31. Many in that age group do hope to become homeowners, if not immediately, at some point in their adult lives.
There are significant differences between the echo boomers and their parents. For one, they are 55 percent Caucasian while the baby boomers are 65 percent Caucasian. More of them have completed college (those over the age of 22). Most significantly to the real estate industry, 900,000 of them own a home. Among the baby boomers, only 500,000 of them own a home.
Whether these reports take into account the numbers is important. For example, how large is the group of echo boomers who now own homes compared to the group of baby boomers who owned homes at the same age. That would have, of course, a huge significance on how the percentages present themselves.
Due to the current job market, rental units will be more in demand than housing to own. The echo boomers, being the larger group, will affect the market more. Rental rates increase as more units are needed. As the baby boomers retire, many of them will sell homes to move into smaller, more manageable living quarters. Some will move into assisted living quarters. Thus, more homes will be available for sale.
There are so many demographics that will have a significant effect on the housing market echo boomers are only one factor. Only indications can be determined, however. How the scene will play out may not be exactly as surmised at this point. For example, who thought interest rates for mortgages would go as low as they are and remain at that level for this long.