What Is Driving Record Home Price Growth?
- Median single-family home price grew an astronomical 24.4% nationally over the last 12 months
- Even the slowest metro price growth was still 13.3% Y-O-Y
- COVID-19 had an impact, but served more as a catalyst to the underlying demographic and supply trends
Demographic Trends Will Sustain Housing Demand
- Over next 5 years, nearly 5 million Millennials will turn 33 each year, the median age of first-time home buyers
- Some young adults forced back home due to the pandemic will move out and create new households
- Housing construction is elevated, but rising costs and material shortages likely to keep supply short of demand
Strong Apartment Outlook Drawing Investor Interest
- Looming wave of demand is motivating investors to engage in aggressive bidding for Apartments
- Bid climate is driving up prices and may put downward pressure on cap rates
* Through June
Sources: Marcus & Millichap Research Services, National Association of Realtors