Baby Boomers and The Housing Market
The baby boom generation has been a dominant force throughout the decades. As the baby boomers have aged their presence has been felt. In 1950’s there was high demand for baby food, furniture, and everything baby. As teenagers they helped boost economy every year. As we entered the 1970’s the baby boomers came of age, 25 and entered home ownership.(Myers & Ryu, 2008)
The housing market crash was the worst crash in U.S history . It nearly caused the U.S to experience another great depression. The housing market continued to decline , millions of foreclosures were filed in 2009. By 2010 housing prices were still down.
After World War II had drawn to a close, the United States experienced never before seen population growth that to this day has shaped the social and political landscape of the country, and changed how and where many Americans live. Known as the "baby boom," this population expansion happened between the years 1946 and 1964, with the peak happening in 1957.(Myers & Ryu, 2008) The high birthrate unlike anything in American history, added more than 50 million babies by the end of the 1950’s.(Myers & Ryu, 2008)
Home constructions saw growth, as new families searched for better living conditions.The Federal Housing Administration (FHA) and the Veterans Administration offered guaranteed home loans, making home ownership possible. To meet the overwhelming demand for new homes, the construction industry grew rapidly.
Now that the boomers are starting to retire we have to ask ourselves what are they going to do with their homes? (Badger, 2013) They will want to down size and move into retie rent communities. In some ares this will be fine but in underdeveloped ares whats going to happen? Baby boomers were a large amount of children much larger then what we have today. (Burgess, 2013) There will be less demand for single family homes. Baby boomers will be moving on hoping that there is someone behind them to...