CoreLogic's Frank Nothaft says that demographic forces are going to rule housing demand as millennials come of age to buy homes in the coming years. According to Census Bureau data, the largest single age group of younger Americans was 23 years old in 2014, followed by 22 and 24-year-olds. The data also showed that the average age for a first-time homebuyer was 31, meaning that in six to eight years this group will be the prime candidates for buying homes.
But that’s not the only demographic driver at work. The average age of a “move-up” or “repeat” homebuyer is 39. Right now there are about 3.9 million people in this age group. Eight years from now, there will be 4.2 million potential repeat candidates in the sweet spot. There may even be a third wave, as the largest cohorts of baby boomers (those born in 1956 through 1958) hit retirement age and start looking for retirement homes, second homes, or empty-nest condos.