HOUSINGNEWS REPORT
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Rising rental rates: Burns and Porter see a soaring demand for rental units, especially since home ownership rates have declined from 69.2 percent in 2004 to 62.9 percent today. The sharing economy’s de-emphasis on homeownership will be reflected in soaring demand for rental units. By 2025, home ownership rates are anticipated to drop to 60.8 percent, the lowest since the 1950s, the authors forecast. Surge in household formation : Over the next decade, household formation is expected to increase by 86 percent, with well over half of the 12.5 million new households formed choosing to rent rather than own, according to Burns, founder and CEO of John Burns Real Estate Consulting , and Porter, the firm’s chief demographer.
They see hidden patterns that others don’t fathom. Part of their genius is to look at vast amounts of data, find the connections and reveal big- picture concepts that contradict common wisdom in simple and easy to understand terms. “ Big Shifts Ahead ” is an amazing book. From the impact of immigration to the coming boom in household formation by millennials, Burns and Porter masterfully point to the future demographic trends that will drive business in the 21st century. Burns and Porter are the John Naisbitt (Megatrends) and Alvin Toffler (Future Shock) of housing forecasting. If you’re a new home builder, a Realtor, real estate investor or developer, “ Big Shifts Ahead ” is a must read.
ABOUT THE AUTHORS
John founded John Burns Real Estate Consulting in 2001 to help executives make informed investment decisions. Before founding the company, John worked at a national consulting firm for 4 years and for 10 years at KPMG Peat Marwick. As Chief Demographer at John Burns Real Estate Consulting, Chris helps clients understand the role demographics plays in shaping the demand for their business.Before joining the company in 2005, Chris worked for Reed Business Information and was Director of Electronic Media for Reed’s Building and Construction Group.
So what are Burns and Porter’s prophet- like secrets for spotting trends?
ESTIMATED SHARE OF HOUSEHOLD GROWTH (2016 - 2025)
MIDWEST
7%
NORTHWEST
6%
CENTRAL 7%
NORTHEAST
9%
SOUTHWEST 11%
SOUTHEAST 24%
TEXAS 15%
CALIFORNIA
FLORIDA 12%
9%
Source: John Burns Real Estate Consulting LLC
ATTOM Data Solutions • P27
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