* Forecast
Sources: Marcus & Millichap Research Services, U.S. Census Bureau, Moody’s Analytics
Housing Supply Falls Short of Surging Demand
- Surge in home sales pushed median home prices to a record high, as homes for sale fall to new low
- Climbing cost of construction materials may continue to weigh on new home construction
Demographic Trends Driving Housing Demand
- Historically low mortgage rates and pandemic-driven need for space play key role in elevated home sales
- But a bigger driver of housing demand is growing household formation and the aging Millennial population
- The post-pandemic economic recovery is expected to accelerate household formation and housing demand
New Household Formation Will Benefit Real Estate
- Apartment construction expected to fall short of rising demand, putting downward pressure on vacancies
- This will boost housing investment performance
- Increased consumption from new households likely to also support Retail and Industrial performance