The huge pent-up demand represented by
the Millennials offers great potential for the
housing market. If the economy continues
to improve, household formation among
Millennials – many of whom have delayed
marriage and remain childless – will likely
increase as well. But few groups suffered
more from the economic downturn than
young adults whose median incomes
have dropped to levels not seen since the
1970s. As they form households, many
will initially choose to rent, often in urban
areas close to jobs and other opportunities, thereby increasing demand for the
existing rental stock and putting additional
pressure on the need for more affordable
rental housing. We are already seeing the
effect of this demand in the 25 largest
rental markets, where rents have increased,
sometimes substantially, over the past year
(See Table 1, page 23).
The Increasing
Diversity of America
Race Trends, 2000-2030
Distribution of age and race from 2020 to 2030.
(assume average rates of birth, death, and migration)
Race
(Millions)
200M
•
•
•
•
The Silent Housing Crisis: A Snapshot of Current and Future Conditions
White
Hispanic
100M
0.0
•
•
•
•
•
2000
2010
•
•
•
•
•
•
2020
2030
Source: Mapping America’s Future / urban.org / Urban Institute
the U.S. population will grow from more
than 320 million today to nearly 334 million
in 2020 and more than 358 million by 2030
(assuming average rates of birth, death, and
migration).43
During this period, America will become
increasingly diverse with minorities
expected to constitute 40 percent of the
U.S. population by 2020 and exceeding 44
percent by 2030.44 The rapid and substantial
growth in the number of Hispanics will be a
big part of this story (See Chart E).
Photo: The Bozzuto Group
Unlike many industrialized nations, the
population of the United States is poised
to increase significantly in the coming
decades. The Urban Institute projects that
C ha rt E
15
Black
Other