It has been five years since the height of the market, and the housing industry is still trying to fight its way out of the downturn. The recession and unemployment have already placed severe pressure on homeownership rates and now the industry may actually be facing another major hurdle.

Here’s the problem. Baby boomers are getting older. Generation Y is now approaching the age in which Boomers bought their first home. Yet Generation Y doesn’t attach the same value as Baby Boomers do to owning a home. So what happens if they don’t buy – at least, not in the same numbers?

Technology, demands, and interaction styles are rapidly changing and what people want is substantially different today than 30 years ago. So if Baby Boomers in large numbers want to sell off their homes, and the incoming Gen Y does not buy it in the same numbers, we may have a significant shift in demand vs. supply.

The country’s two largest demographic groups – the Baby Boomers (78 million) and Generation Y (73 million) are playing a game of checkers, exchanging pieces of power with one another left and right. This shift is occurring as each generation reassess their priorities, searches to resolve changes in styles and demands, as well resolutions for economic limitations.

A senior resident fellow at the Urban Land Institute, John McIlwain says that the largest concern with Generation Y is that with a 30% unemployment rate and an average of $23,000 post-college debt, the majority isn’t saving for a down payment, and their parents – mostly Baby Boomers – are struggling to recover their own retirement savings.

I am a Gen Y and although I want my own home, one-day, my idea of a home is not suburbia. It is not a small patch of land with a white picket fence, two dogs and a cat. The world is my oyster and I have places to be, things to do, and oh yeah, not to mention debt to pay off. So adding in a mortgage loan is not appealing – renting sounds easier, simpler and more fitting.

Like our parents who sought a better life – the American dream, the white picket fence – that saw the struggle of the silent generation through two wars and the depression. We too are seeking a better life. We want a life that is not falling under the weight of the white picket fence. As Gen Y, we have grown up with technology. So most of our lives are digital and online. Our home is our laptops, our iPods, our Smartphones, our Facebook pages.

The US Census Bureau shows that homeownership rates have fallen nearly three percent (3%) since those sunny days before the crash. We are down from 69.2% to 66.9% and if we stay on our current course, we’ll be well on our way to the beat the lowest levels of homeownership seen in decades.

We have all the makings for a journey down the rabbit hole, much like Alice in Wonderland. Only this time, she’ll be saying “There’s no place called home.”

About the Author

Tinus (24) is the eldest son of Stefan Swanepoel, author of the annual Swanepoel Trends Report. He serves as Publications Manager for RealSure, Inc. and also is part of the research team for the annual report. His background includes two Bachelors of Science and a minor in Management. Tinus enjoys expressing his creativity in design and considers himself a big dreamer and a problem solver.

For more information on products he’s involved in, go to http://www.retrends.com.

Editors Note

On behalf of Swanepoel team here at RealSure, Inc., we would like to congratulate all ten of the winners of the 2011 Swanepoel Trends Report Free Drawing at this year’s Tom Ferry Success Summit. This year’s winners include:

• Chirag Shah of Gateway Realty in Mamaroneck, NY
• Dave Ashley of Keller Williams in Mission Viejo, CA
• Deborah Bremner of the Bremner Group in Los Angeles, CA
• Jackie May of First Team Real Estate in Anaheim Hills, CA
• Jennifer Pritchett of Coldwell Banker Presidential Brokerage in Newport Beach, CA
• Karie Lacy of Prudential in Yorba Linda, CA
• Ken Gunderson of Century 21 Ambassador in Whittier, CA
• Lynn Whitaker of Gibson International in Los Angeles, CA
• Robert Jenson of Re/Max Central in Las Vegas, NV
• Sean La Rue of Franklin Loan Center in Palm Desert, CA

For any further information regarding any of our products including the 2011 Swanepoel Trends Report, you can visit us online at http://www.retrends.com.

We wish you all the best in your career and life endeavors.

In Friendship,
Tinus Swanepoel
Publications Manager | RealSure, Inc.

About the Author
A big dreamer and problem solver, Tinus spends his time expressing his creativity in publication research and design. His background includes two Bachelors of Science and minor a in Management. He currently serves as the Publications Manager at RealSure, Inc. For more information on products he’s involved in, go to http://www.retrends.com.

Editors Note
The 2011 Swanepoel Trends Report is expected for a February 2011 release. Winners will be notified individually as the report becomes available.