With 75% of U.S. households without children and today's supply shortages in the Northeast, unmet demand for owned and rental housing across the region will likely persist, making it difficult for inventory levels to normalize.
What to Watch
The Mountain West and Sun Belt regions are experiencing a surge in new construction. With steady population growth, ample land, and developer-friendly policies, attractive rentals and new supply may spur net migration.
The Bottom Line
If you are a baby boomer or Gen-Xer with liquidity planning to stay in the Northeast but considering moving to harvest maximum equity, waiting to sell will not make your transition much easier or cheaper.
Five-Year Market Review
Recommended Actions
Talk with a tax expert about your plans. Get an updated comparative market analysis from us. Configure online searches for a short list of locations. These steps will familiarize you better with making moves during this cycle. It might take two years, but the time to start is now.
What Happened?
An ultra-low-rate environment during the pandemic accelerated home equity borrowing for improvement projects while also pulling forward sales that would likely have been more evenly distributed in subsequent years. Economists will study the implications of this boost in market demand without a supply response for decades.