On more than one occasion we have talked about considering what may be the new norm in the mortgage and real estate markets. There are some “emerging” things to consider as this possible new norm takes shape. Some early indicators from Freddie Mac’s “Borrowers of the Future” should be considered now:
Work is more mobile and can be done from anywhere. That reasonable commute that has made so many suburbs so attractive for decades is becoming less necessary. And a commute of any sort may be impractical as more Americans work two or three different jobs. Those individuals need to live close to all three jobs or be telecommuting to one or two.
That creates two different dynamics.
Those areas that are less attractive commutes become attractive and affordable options for those that can work remotely, while more urban settings might meet the needs of those that hold multiple jobs. Freddie Mac estimates that by the year 2020, 43% of all workers will be freelancers, either by choice or because of new business models.
Freddie also reports that America is on track to become a “majority-minority” country — Hispanic Americans are expected to make up 50% of first-time homebuyers by 2020. In addition, Freddie claims “multi-generational household trends are increasing, with children, parents and grandparents living under one roof.” That is a significant shift from what has been the American norm, at least for the last two or three generations. But when you consider the number of millennials that are currently living with their parents and the number of boomers choosing to “age in place,” the multi generational household and the homes that accommodate those households could be a significant piece of the housing market in the future.
It is time to consider change and “embrace” it. Let’s get together to talk about getting a jump on the future and being ready for whatever consumer demands it brings.