How Healthy is the Housing Market for 2020? Ron Cadman Discusses Residential Real Estate Investment Prospects

The Realtor.com housing forecast indicates that the market for entry-level housing will strengthen, affordability will be new home buyers’ chief concern, and millennials will be the largest segment of the home buying population. Real estate developer and co-founder of Investar USA Ron Cadman discusses these and other housing market trends for 2020. Ron Cadman specializes in multifamily rental housing.
What can we expect from the housing market in 2020? For sellers, affordability will be the key factor, with supplies being limited in most regions due to insufficient construction. Here are some of the trends we can expect in the coming year.


  • The housing market will be dominated by the millennial population. 2020 will be the year the majority of millennials will enter their 30s – standard home-buying age – and will account for more than half of all mortgages.


  • Supply will fail to meet demand. Entry-level home inventory will not be sufficient for the number of new home buyers, in spite of a slight uptick in new construction in certain metropolitan regions. The housing shortage is particularly problematic in California in nearly all major cities, but Seattle, Cincinnati, Phoenix, and Kansas City all experienced a double-digit drop in supply between 2018 and 2019.



  • There may be some economic instability. While the economy – as of December of 2019 – is strong, there is nonetheless concern that there could be slow growth in the coming year due to ongoing trade disputes and uncertainty in global markets. Historically, such unease results in a reduction in consumer spending.



  • Affordability will be the primary home sales driver. With more potential homeowners being priced out of California, cities in Nevada, Nevada, and Texas will see a migration. New home buyers will prioritize affordability, leading them to focus more heavily on non-metropolitan regions.


    • There will be numerous challenges for both home buyers and sellers. For real estate investors, the watchword for 2020 and beyond is “affordability,”

    Ron Cadman is a real estate development professional with more than three decades of expertise in residential real estate investment.

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