Demographics and the real estate market
On the demographic front, Rosenberg notes that the demographics aren’t favorable to housing, and certainly less favorable than was in the case in the 1970s. He notes that the growth rate in household formation among 35- to 44-year-olds have stagnated for four years now. The heyday for demographics was back in the mid-1970s and 1980s when annual household formation was between 3% and 6% growth. Now, total household formation is growing at less than 1% — one of the slowest growth rates in the past four decades.
What impact will this have on growth in Charlottesville? How will growth be affected? How will new developments in the region be affected if household and income growth stagnate?
These are a couple of good demographic-related links.
Cooper Center
Federal Reserve analysis
Freedemographics
