Predictions for the Next Decade in Real Estate

The major news and opinion sites for real estate are making predictions for the next year, and the next decade. One of the shortest, and most interesting come from Inman.com, and news site for Realtors. They summarized a report from John McIlwain, a senior resident as the Urban Land Institute. McIlwain predicts that over the next 10 years home price appreciation will be between 1-2% each year, once the market recovers. Home ownership will drop from 67% to 62%. Also:

• Older baby boomers to move to urban, mixed-use, mixed-age centers near family instead of retiring to Sun Belt communities;
• Immigrants to snub the suburbs in favor of more close-knit communities;
• Younger boomers to face the challenges of lost home equity and a smaller pool of move-up buyers;
• Generation Y to rent for long periods by choice or because they are paying off student loans or have stagnant incomes. 

It is good news for homeowners for prices to slowly, but steadily rise, not shoot up in a year, only to drop back down just as quickly.