This fall, the real estate market is showing no signs of slowing down. Typically a hot spring market slows slightly in summer, then cools down further in fall. This year, the pandemic threw that upside down and created new demand for homeownership. Can this housing demand continue into 2021?
According to a new study, the answer is yes. Demand for new homes in particular will only continue to increase in 2021. According to the latest NAHB Housing Trends report, demand for new homes will increase from 18% to 31% in 2021, while demand for existing homes is expected to drop.
Millennials and first home buyers make up the biggest share of those who plan to move soon. Gen Z (born 1997 to 2002), will also start to have a presence as first time buyers. According to this study, millennials and Gen Z would prefer a new home, while Gen X and boomers prefer existing.
This is good news for homebuilders, who are selling homes so quickly they are running out of inventory. The rate of single family permits and housing starts are both up for September, which means more homes are on the way.