2017 brought another year of growth in the real estate market throughout the United States and in Memphis. Each year we are seeing growth in the area, with new, young families arriving to enjoy our Southern hospitality. But why are the families choosing now to buy homes and Memphis and especially custom homes? Here are some stats that will help explain the boom.
The housing market has risen 11.4% since 2008
It’s hard to believe it’s been a decade since the housing market collapsed, plunging the economy into crisis. In the fourth quarter of 2008 alone, home prices fell 12.4%, the largest year-over-year decline since the National Association of Realtors began keeping records in 1979. In 2017, the market has regained a big chunk of that loss, with the median home price rising from $180,100 in the last quarter of 2008 to $200,700 as of Aug. 30, 2017—an 11.4% increase.
Millennials made up 33% of home buyers in 2017
Millennials made up a third of the buying market, according to Realtor.com. They’re even expected to eclipse baby boomers (30%) in terms of the percentage of home buyers. Many in Memphis are purchasing starter homes such as condos in the downtown area and customizing these for a more refined taste.
Suburban markets will see the vast majority of residential growth
Suburban life has often been parodied in our culture, but its popularity continues to skyrocket. A staggering 80% of residential growth will happen in suburban communities over the next 10 years, compared to 71% from 2010 to 2015.
Families that are growing are looking to leave urban areas for a more low-key suburban area with more yard space. This is causing a boom in Suburban areas new Memphis like Germantown.