Buyer Considerations – Census Figures Show Real Estate is a Great Investment
For those of you who have been wondering just how good an investment real estate is, consider the following:
1. United States – From 2000-2010, the population of the United States increased by almost 10% and is now at 308 million people. At 2.4 persons per household, there are approximately 128 million households in the United States. If the population were to increase another 10% in the next 10 years, we would have another 31 million people in the country, or another 13 million homes to be built to meet the growing demand for housing. That’s another 1 million dwelling units that would have to be built every year.
2. Florida – Florida’s population increased 18% to almost 19 million. At 2.4 persons per household, it would mean there are approximately 7.5 million dwelling units. If the population increased another 18% in the next 10 years, the state would have to add another 1.4 million units to meet needs of over 3 million new residents. That would mean Florida would have to build another 116,000 residences per year to meet its growing population. Nearly all of these homes will be built along the coastal metropolitan areas.
3. Retirement – U.S. census figures also indicate there will be 75 million baby boomers retiring in the next 15 years. Because of the adverse impact of winter on people’s health as they age, retirees that can afford it, will be moving to warmer climates, especially in coastal areas. This will lead to even greater demand for housing in areas like Florida.
4. Life Expectancy – Additionally, people are living longer and longer. In 1940, according to the U.S. Census Bureau, life expectancy was 63 years of age. In 2000 life expectancy increased to 77 years old, and that number is projected to reach 82 years of age by 2040.
5. New Construction – New housing starts over the past few years were only a fraction of the number required to meet future housing demand. Future population increases will require significantly more homes in the coming years, yet new housing projects have been almost non-existent! This lack of inventory has created one of the best long-term opportunities in investment history for real estate investors.
Limited inventory, increasing population, and an exploding retirement population will lead to a perfect storm of phenomenal long-term investment opportunities for real estate investors. The time to buy is now!