The report, entitled The Shifting Nature of U.S. Housing Demand, stated that average home prices would continue to rise steadily for the next several years, culminating with an expected 3 to 4 percent increase between 2015 and 2017.
A driving force behind the recovery of the housing market will initially be a higher demand for rentals, as many American are delaying their entry into home ownership due to financial concerns. However, an important distinction in the report states that home ownership remains one of the most desirable long-term investments for Americans.
Other conclusions that were drawn from the report include the expectation that the average home size will shrink, rental demands will clear the current oversupply of homes, and that housing recovery will not develop equally among all the states.
For the full report download, you can visit The Demand Institute’s website.