When we sat down with economist John Burns of John Burns Real Estate Consulting, we learned of a few major changes on the horizon. John provided his economic viewpoint on the ecological and generational shifts we’re beginning to see take hold.
Ecologically, California’s greenhouse gas reduction initiatives encourage development near transit, which is not always financially feasible. John suggests a better approach might be to move jobs inland to where the cheap housing already exists, and to energize those economies so more people could work locally.
Generationally, 25 to 34 year olds will be ready to buy homes as the recovery gets stronger—a younger group with far different priorities than previous generations. Sometimes characterized as not very interested in home ownership, will this group take the plunge? John says yes, but time is very important to them and they’re not so willing to take on a long commute as previous generations.