Demand for real estate set to return because of echo boomers

Even though it looks like the struggling housing market is showing some signs of improvement, for instance here in Las Vegas lender REOs in the lower half of the marketplace are selling briskly, there remain steep hurdles to overcome before it can be called healthy again. Mortgage financing is hard to come by, countless homeowners are upside down and unemployment is climbing, just to mention some of the obvious problems.

But if the spotlight is shifted over into the near future, then there is good reason to be hopeful about what's to come. Here is why. Harvard University's Joint Center for Housing Studies asserts in its annual State of the Nation's Housing report that once this recession begins to lose steam, the real estate market will recover rather strongly due to favorable demographic trends.

As stated by the report so called echo boomers, the roughly 75 million citizens born between 1979 and 1995, will form the base for it. In the next 10 years they will start up from 12.5 million to 14.8 million new households and that logically means increased demand for housing. Everyone can happily put their arms around this theory.

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