Retirement boom to change what houses look like

Household growth is not keeping up with bullish employment growth
  • The hot Bay Area real estate market is normalizing, according to Pacific Union and John Burns Real Estate Consulting.
  • As more babyboomers retire over the next decade they will be looking for a new kind of housing.
  • Only 29 percent of U.S. households have children living in them, according to 2014 U.S. Census figures.

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The San Francisco Bay Area real estate market is experiencing a “normalization” and a slowing, said Pacific Union CEO Mark McLaughlin and John Burns, CEO of John Burns Real Estate Consulting, at the annual Pacific Union Housing Outlook event held in San Francisco on Wednesday night. “The press is out there saying that the housing market is crashing -- it's not; it's slowing, it's normalizing,” said McLaughlin, talking not only to a San Francisco audience but streaming to a Chinese one in Beijing. McLaughlin and Dean Wehrli, Senior Vice President at John Burns, gave presentations on all the main markets of the San Francisco Bay Area and showed in all instances that household growth was not keeping up with extremely bullish employment growth. Sales at the upper end of the Bay Area housing market had slowed in September and October, added McLaughlin. "The San Francisco Bay Area is on our watch list for a correction. While we strongly believe that San Francisco has beco...