Well, if you believe the numbers, we are in for a solid ten years of California home construction and all the opportunities it means for the economy. Those pesky millennials have been slow to enter the housing market for several reasons, not the least is their parents’ willingness to house them.
An unbelievable 40% of Americans age 18-34 are living with relatives according to U.S. Census data. That’s the highest since 1940. In California, home ownership in all age groups is only 53.7%, the third lowest in the nation.
Bolstered by more available money, big builders are starting to answer the housing shortage as they attempt to supply the 1.8 million additional homes that will be needed by 2025. Think that sounds far off. It’s right around the corner.
California’s make up is changing fast. Those considered middle-income are leaving the state and those at both ends of the income spectrum are moving in. This would suggest that there will be a severe need for multiple family complexes that will be rented to the lower income arrivals. And, there will larger, perhaps custom, homes built for the higher earners.
So, now is the time to develop strategies for how your product or service will benefit from this information. Home goods are certain to enjoy growth as 50 million more people are coming to the state.