Changing Demographics: Implications for the Housing Market Housing Finance Council Call Laurie Goodman Urban Institute July 1, 2015

Overview Household growth continues, mainly fueled by Hispanics and other non- whites  : 11.6 million net household growth; : 10.4 million net growth  Hispanics make up 39% of growth in this decade, 46% in next Rental housing growth will outpace ownership housing growth  Renters grow by over 700K/year 2010s, 580K/year 2020s  Continued net growth of 450K/year both decades Homeownership slipping; African Americans hardest-hit  By 2030, overall homeownership falls to 61.3%  African Americans slip from 44.5% to 40% (lowest since before 1970)  Other minorities more stable as young immigrants age and integrate Huge growth in senior households  We’re adding 1 million senior households yearly  Senior renters will double, increasing pressure on affordable housing 2 Source: Laurie Goodman, Rolf Pendall and Jun Zhu. “Headship and Homeownership: What Does the Future Hold?”, Urban Institute, June 8, 2015.Headship and Homeownership: What Does the Future Hold?

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Annual household growth, millions 4 Source: U.S. Census , Urban Institute projections (p). Rental housing demand high from 2010 to 2030

5 Homeownership Rates by Race/Ethnicity Race/ethnicity White Black Hispanic Other Total

6 Household Growth by Age Group millions