Demographic Changes and Demand for Housing

Demographic shifts such as population growth, aging population, migration patterns and changes in household composition can significantly influence the demand for housing. For instance, an increase in population or a trend towards smaller households can drive up demand for housing.

Some current demographic trends impacting the housing market include an aging baby boomer generation looking to downsize, a millennial generation entering their prime home-buying years, and increased urbanization leading to higher demand in city centers.

As a mortgage broker you can adapt by understanding these demographic shifts and adjusting your services accordingly. For example, if theres a surge of first-time home buyers in the market due to millennials reaching home buying age, you could focus on offering products and services catered specifically towards them.

When demand for houses increases without an equivalent increase in supply, it tends to push house prices up. This often leads to higher mortgage rates as lenders anticipate future economic conditions. Conversely, if there is less demand for houses but plentiful supply (or over-supply), it may lead to lower house prices and lower mortgage rates.