If you are concerned about the future value of your home, consider that demand for housing is driven primarily by two key factors – population and household growth. The Census Bureau projects that U.S. population growth will increase by 40 million between 2005 and 2020 and NAHB projects that the number of households will jump by more than 6 million between 2005 and 2010. It is estimated that the home building industry will need to build 17 million new homes over the next decade just to keep up with population and household growth.
Consider the increasing scarcity of available land in metro markets like Portland where jobs are located and where people want to live. As inventories wind down and demand rises due to increases in household formations, prices will rise as well. As the economy continues go grow, create jobs and increase household income, all these factors bodes well for future house price appreciation.
