It’s actually really simple. The home ownership rate is back to its historic norm. That’s going to lead to slower appreciation unless:
- We see a lot more households created
- We go back to lots of subprime financing to increase the home ownership rate
Millennials should be in prime household formation time of their lives.
Millennials prefer to rent apartments in urban settings.
Millienials and next generation z will buy homes. Together they are twice the size of the boomers generation. There will be a huge surge in buying over the next ten years, but only where there are high paying jobs.
But most millennials will only get modest paying jobs. Only a small percentage gets good jobs