First-time buyers will make a comeback into the housing market next year.
That’s according to Realtor.com, which forecasts strength in the US housing market in 2015.
“The residual financial effects of recession-driven job losses and subsequent unemployment have impeded millennials’ entry into the home-owning market,” writes Jonathan Smoke, chief economist for Realtor.com. “In 2015, increases in employment opportunities will empower younger buyers to return to the market and fuel the continued housing recovery.”
Realtor.com recently released its list of “Top 10 Markets for Housing Growth in 2015.” These cities have a great deal of new construction, and their job markets are attractive to young professionals. They range from large metros like Los Angeles, forecast to see increased home sales, to small and affordable cities like Des Moines, Iowa.
Local Metrics: Household growth formation ranks 7th in forecasted household growth over the next 5 years. Home sales are expected to grow 11%.
Comment: The Atlanta metropolitan area has the eighth largest economy in the US and the 17th largest in the world.
Local Metrics: Des Moines currently has the largest millennial home ownership rate at 56% vs 38% nationally. That rate is expected increase slightly in 2015.
Comment: Des Moines is America's best city for young professionals, according to Forbes.
Local Metrics: Household formation ranks 3rd in forecasted household growth over the next 5 years. Employment is expected to grow at twice the national rate. The volume of home sales is expected to rise 5%.
Comment: Houston is regarded as the 'energy capital of the world' and hosts the headquarters of up to 40 publicly-traded oil and gas companies.
Local Metrics: Household formation ranks 5th in forecasted household growth over the next 5 years. Supply is tight. Home sales are expected to surge 10%.
Comment: Tourists injected $US6.7 billion into DC's economy last year.