Early this year the Urban Land Institute predicted two major changes in the US housing market.

• Home appreciation will slow considerable to about 1 to 2 percent annually. Four months into the year house prices show 0.3% annual growth.

• The current US homeownership rate, then at 67 percent (which is down from a record height of 69 percent), will fall further to about 62 percent. Four months into the year homeownership rate has held steady at 67.1%.

The report also cited four demographic trends that will have major impact on housing.

Aging baby boomers (ages 55 to 64 years old):

a) They will continue to work, and;
b) Many stay in their home until values recover;
c) Those able to move will choose mixed-age living environments that cater to their lifestyles;
d) Convenient suburban center will also be a choice.

Younger baby boomers (47 to 54 years old):

a) They are entering their prime earning years but;
b) Lack home equity;
c) This will likely curb prospects for second homes.

Generation Y: About 85M strong):

a) They are less interested in homeownership than their parents at the same age;
b) “They will be renters by necessity or choice for years ahead.” Says the report.

Immigrants – legal & illegal (about 40M strong):

a) They opt for multi-generational households;
b) When they can afford, larger homes in neighborhoods with a sense of community.

Note: Not mentioned in the report is the generation X, those born from 1964 to late 1970. In France this group is labeled translates as “Generation Whatever.”  This generation is not to be forgotten has been quite counter to baby boomers and bring a very unique prospective on homeownership and communication.