It's time to take a hard look at what housing will need to be provided in the next decade. How can you provide product that will be in demand? New data shows enormous growth with 55-plus formations and, even more so, with minorities.
While both changes are significant, the increases from our 2013 household projections are due entirely to the new Census Bureau population projections. In contrast, the methodological changes produce slightly lower projected growth than our previous methodology. However, the methodological changes do affect the distribution of household growth by age, race and ethnicity. In particular, they increase household growth among the oldest age groups and also among non-Hispanic whites between 2015 and 2025. In contrast, they reduce growth among 25-44 year olds as well as from black and Hispanic households.
Despite these shifts, millennials and minority households are still projected to be the main drivers of household growth in coming decades. Indeed, millennials under age of 30 in 2015 are projected to form 23 million net new households between 2015 and 2025, while 72 percent of household growth overall is expected to be non-white households. At the same time, aging of the baby boom generation will bring the number of senior households up to unprecedented heights (Figure 2). Together these forces will reshape housing demand over the next two decades.
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