Tuesday, November 29, 2016

Zillow's 2017 Housing Market Predictions

After Zillow surveyed more than 100 economic and housing experts, the consensus is that home prices nationally will rise 3.6% in 2017. Here are some other predictions from Zillow:
  • More Millennials will buy homes next year than this year which is a pretty easy prediction to make as Millennials get older each year, more of them will be able to buy a home and more of them will choose to buy a home.
  • President-Elect Trump's potential immigration policies could exacerbate the shortage of construction workers which would cause labor costs to rise, longer construction time periods, and higher home prices. (This may be a good opportunity for blue-collar jobs to come back into the arena as great opportunity, vs. the 4 year degree which comes with alot of debt and a lot of competition). 
  • As Millennials buy homes it's expected they will purchase homes further out in the suburbs or exurbs where homes are more affordable. This will result in the percentage of people driving to work to rise for the first time in a decade. This is happening despite the fact that major cities are developing their urban cores or centers with denser development and smaller homes that are more affordable. But, they are not affordable enough. Plus, one thing not being addressed is quality schools in the urban centers. Most Millennials grew up in the burbs in big homes with good schools; so Millennials who are parents already are buying homes and moving back "home" to the burbs.