Housing Demand Expected to Surge Over Next 10 Years
The Mortgage Bankers Association (MBA) projects between 13.9 and 15.9 million additional households will be formed by 2024, making the next decade one of the strongest in housing in U.S. history, according to a new research paper released today. The report, titled Housing Demand: Demographics and the Numbers Behind the Coming Multi-Million Increase in Households, shows that the housing demand surge will be driven by Hispanics, Baby Boomers, and Millennials.
"Household formation has been depressed in recent years by a long, jobless recovery and by a lull in the growth of the working age population," said Lynn Fisher, MBA's Vice President of Research and Economics. "Improving employment markets will build on major demographic trends - including maturing of Baby Boomers, Hispanics and Millennials - to create strong growth in both owner and rental housing markets over the next decade." "When it comes to starting new households, age 35 is the new 25, as younger Americans are spending a longer time in school and delaying major life events like getting married and having children," said Jamie Woodwell, MBA's Vice President of Commercial Real Estate Research. "As Millennials age and create more housing demand, these long-term social trends will mix with demographic changes and the waning hang-over from the Great Recession with a net outcome of increased demand for housing. Household growth will include, by race:
5.5 to 5.7 million more Hispanic households in 2024 than in 2014;
3.4 to 5.0 million more non-Hispanic White households;
1.8 to 1.9 million more Asian households;
2.4 million more Black households; and
730,000 to 890,000 more "other" households.
Demand for Fiber Cement Products is Forecast to Rise
Through 2019, world demand for fiber cement is projected to expand nearly five percent per year to more than 32 million metric tons. The fiber cement’s ability to mimic the appearance of wood while offering greater durability will boost demand in siding applications. These products are gaining popularity in the US as they can withstand many harsh climates without rotting and are impervious to insects. For example, between 2004 and 2024, US demand for fiber cement siding is expected to nearly double its share of the total siding market.
Demand will benefit from its superior performance characteristics (such as ability to withstand harsh weather conditions without rotting or warping and low maintenance requirements) that will allow fiber cement to gain market share from other materials, such as wood products.