Millennials, baby boomers shaping current housing market

Millennials, baby boomers shaping current housing market

EVANSVILLE, Ind. (WFIE) - During the annual F.C. Tucker State of the Real Estate Presentation, the company president says the market is booming.

The positive growth in real estate started around 2010. F.C. Realty President Ken Newcomb tells us the demand is high, but the supply is low.

“It’s growing so fast that we don’t have enough supply," Newcomb explained. "We need more housing we need more industrial, the retail market is still strong in our area.”

So how do you solve this problem?

One way, according to the panel, is by re-inventing space. This can be done by allowing older buildings to be repurposed and upgraded to help meet the growing demand.

For instance, Tri-State Food Bank has acquired an existing 80,000 square-foot facility for its new headquarters. This kind of thing is happening downtown too.

“We’ve got to have a vibrant downtown to have a vibrant community, and I think we’ve got that now we’re seeing that growth,” said Newcomb.

One big topic shared on Thursday was the difference between millennial and baby boomer buyers.

“Millennials are now coming up, they’re the number one home buyers, they are the ones changing business now,” Newcomb explained.

A graph shown at the presentation says 36 percent of home buyers are millennials, and 56 million of this generation are in the workforce.

Every day there are around 10,000 baby boomers celebrating a birthday qualifying them for retirement.

But how do these numbers affect the real estate market?

“Boomers now have the larger homes that are being sold and as the millennials have an expanding family they’re taking those homes over," said Newcomb. "So it’s all in a mix and it’s a good mix.”

What will the next year in real estate look like?

Well, Newcomb says things will continue to be strong for not only next year, but for the next few years to come.

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