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Market Update communities that this trend shows up on a national scale," said Crowe. "Bingo! That's what's happened. We have enough communities that you're beginning to see these kinds of improvements overall." Demographics Impact Housing Demand In addition to economic indicators, U.S. shifting demographics also impact housing demand, starting with baby boomers born between 1946 and 1964. Beginning in 2011 and continuing through the next two decades, approximately 10,000 baby boomers will retire every day. As they age, their housing needs will change. Older homeowners might downsize, become renters instead of owners, rent out their properties as investments, or may even combine households with younger family members. Other demographic shifts are also having an effect on housing. For example, more foreign-born buyers are purchasing properties in the U.S., often paying in cash. The number of Hispanic homebuyers is also growing. By 2020, sources indicated that approximately half of all homebuyers will be Hispanic. Ideal Time for Gen Ys The group to watch will be the Millenials, also called Gen Y, born in the 1980s and 1990s. This group of 80 million or so potential home buyers is at the prime age, 25 to 34, for household formation, says Crowe, so housing demand is expected to grow dramatically. "We have this enormous boom of additional people who will be forming households and needing houses," he explained. "The underlying fundamentals behind homebuilding are very positive. Now what kind of home and where is a totally different picture, but still we know we have an oncoming flow of housing demand." Though household formations are on the rise for Gen Y, more households overall are switching to renting versus home ownership. In fact, of the new households formed since 2011, the vast majority opted to rent a home instead of buy one. This is occurring for several reasons. In some cases, owners lost their homes to foreclosures or short sales. They still want to live in single-family homes, but can't qualify for a mortgage, so they rent single-family homes instead. In other situations, people aren't ready to buy homes yet, particularly Millenials. This group tends to be entrepreneurial in nature and therefore mobile in terms of employment. By not settling into a job for more than a few years at a time, this age group is less likely to purchase a home, at least not right away. In addition, Millenials often have student loan debts, may (continued on next page) Fleet visibilty and easy scheduling keep your team sane and productive Dispatching Solutions, inc (909) 460 - 6404 www.dispatchingsolutions.com info@dispatchingsolutions.com June 2013 | Construction Equipment Distribution | www.cedmag.com | 29 26_Housing_Feature_Index_KP.indd 29 5/31/13 2:42 PM