Posted on May 24, 2011 12:23 PM
Generational Forces Shape Housing Industry
As baby boomers retire and millenials grow up, their housing needs are likely to have profound effects on the housing market. In “The Coming Housing Calamity” and “Housing: An irresistible force meets an immovable object“ by Robert Steuteville, research indicates that demographic and economic forces may place a constant downward pressure on the market for the next decade. The New Urban Network series explores how the single-family home segment of the housing industry faces crisis as baby boomers move to sell their single-family homes while millenials are less likely than past generations to purchase those homes. Both groups are more likely to want multifamily housing and/or housing on small lots located near transit.
By implementing GO TO 2040’s land use and housing recommendations, local governments can be proactive about these challenges. The region’s development over the last several decades has resulted in a pattern of land use that is not sustainable: Outward expansion has consumed vast amounts of land, requiring costly investments in water, wastewater, and transportation infrastructure. In addition to the environmental and quality-of-life concerns that result from increased dependence on motor vehicles, this growth has emphasized housing development that research indicates is in many ways out of sync with residents’ needs now and in coming decades. GO TO 2040 recommends improving livability through planning for land use and housing by supporting a range of housing options and dense, mixed-use development with transportation options.