The NAHB’s Eye on Housing is reporting that with declining birthrates, there will be lower demand for rental housing two decades from now when those born in recent years will be entering the rental market. Citing data from the Center for Disease Control and Prevention, they say the effects will spread to the single-family market in the following years and will persist for many years to come.
“The effects of declining birth rates on housing demand are not limited to the distant future. As fewer and fewer females get married and have children before they turn 35, the socio-demographic incentives to start their own household are weakening. This, in turn, suppresses housing demand for both for-sale and for-rent single-family housing, the preferred choices of families with children under 18 years.”