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Housing Dimensions Blog

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12% Price Appreciation per Mortgage Point

by John Burns

In the last 15 years, home prices have grown 29% faster than incomes, primarily due to falling mortgage rates. Since the monthly payment determines what most buyers can afford to pay for a house, we thought we would show you the powerful stimulus that lower interest rates have on home price appreciation.

Source: John Burns Real Estate Consulting, LLC

John Burns's picture

4 Shifts Needed to Sell More Homes

by John Burns

As noted during our consulting team's visits to thousands of communities all over the country last year, and also shown by the slower 2014 sales in our master-planned communities survey, the land development and home building industries need to shift their mix of communities to target a different mix of buyers than the traditional mix. New home community segmentation needs to change in four ways:

by John Burns

More people were born in the 1950s (41 million) than in any other decade, and they are dropping out of the workforce in droves. Those born in the 1950s will begin turning 65 in 2015. In fact, in the last 10 years, we have transitioned from roughly 2.5 million US residents per year turning 65 to 3.5 million per year, and that number will trend up to almost 4.5 million by 2025 before it starts trending down again.

This seismic shift will have a huge impact on the economy, as the traditional working age population of 20–64 will transition from growing 1.0 percent per year for decades to growing 0.25 percent per year. 20- to 64-year-olds earn and spend the most, so you can almost guarantee that the economy will grow more slowly than it has in the past.