There have been lots of trends (mostly good) in real estate this year.
- Existing home sales have been mostly UP and exceeding expectations
- New home sales are near a 12-year high
- Interestingly, a statistic that can be seen as mostly positive (for certain suburbs) but partly negative (for certain major cities) is that the Millennials who are between the ages of 25 and 39 have shown interest in moving OUT of several major cities.
One indicator of economic prosperity is that people are able to move in the first place. When jobs are plentiful and wages are strong, making a move – into or out of a city – is much easier. In economically “good” times the risk of selling the old home or apartment is far less – and the reason for moving often is for a promotion or new job opportunity.
According to a recent piece of news, the list of cities losing Millennials and those specifically between ages 35 and 39 include first-tier locations of New York, Chicago, Houston and San Francisco. Suburbs offering better services and schools are the destination. Although cities just below that “first tier” including Los Angeles, Phoenix, San Antonio and Austin are picking up young adults.
One of the most significant factors I observe is that jobs are mostly plentiful in and around certain major urban areas – and the list of cities has changed greatly. Cities near major state universities are relatively better off and a handful of states with low or no state income tax have become growth centers.
What areas are you, your kids or grandkids looking at for a possible future new home?