Being immersed in real estate, I’m hungry for information about the industry because the more we know, the more we can prepare for market shifts and grow our investments. And since I am a Millenial, right on the cusp, I know from experience that after we bounce from place to place, eventually the idea of settling down in a home of your own with your family is also quite appealing.
Here are a few of the things I found most insightful about what is expected to come to the Real Estate market in 2015:
1. The 2015 Chicagoland Apartment Association Economic Outlook predicts that rents are really high and will remain high, but the question remains, for how long? In 2014 there were 3500 new units available and another 5000 deliveries are expected this year due to large firms that are investing in multifamily units.
2. The National Association of Realtors is predicting that mortgage interest rates will be on the rise, and appreciation will further drop.
3. From attending the Lincoln Park Builders Club forum, experts are forecasting that rentals will continue to dominate as the Millennial population is not buying into the “American Dream.” Research shows the new generations are not interested in committing to one location, (home down 5% versus 10 years ago) and they’d rather have the flexibility of renting in the neighborhoods which are most desirable to them for which they might not be able to otherwise afford, if buying–or, of course, if they live with their parents. (29% of people 35 and under still live at home.)