Mischer News

The largest generation of young people since the '60s is beginning to come of age. Often referred to as “Generation Y” or “Echo Boomers”, they were born between 1982 and 1995, and are nearly 80 million strong. Making up nearly a third of the U.S. population, they are spending $170 billion a year of their own and their parents' money, according to the Associated Press. Needless to say, Generation Y is already having a huge impact on many different segments of our economy, including the recently strained housing market. But, things are slated to improve.

According to Harvard University researchers, members of this new generation — children of the baby boomers — are ""entering their peak household formation years of 25 to 44 with more than 5 million more members than the baby boomers had in the 1970s,"" Harvard researchers said in a recent report. ""The echo boomers will help keep demand strong for the next 10 years and beyond."" While some of this demand is likely to flow into the rental market, the preferred tax treatment of mortgage loans should help keep the American infatuation with homeownership alive.

It is suggested by experts that over the next ten years, a combination of cash conservation and stiffer lending requirements will ward of another housing bubble, at least over the next few decades.

As a result of these spending habits and financial practices, the recent housing bubble will likely soon burst, allowing for a rebirth of the housing industry and in turn a more stable new home market with slow, but steady, appreciation over the next ten years. All good news!