Last year proved to be an interesting year for investors with several factors that made 2015 a positive step forward. Below we highlight just a few things that changed the face of the market as we reflect on the last year.
Labor Market Gains: Unemployment dropped to 5% last year, while wages continued to increase, a good sign for the housing market and the overall U.S. economy. With wage growth being crucial to the increase in affordable housing, all signs are pointing to a hopeful 2016.
Increased Household Formation: As household formation more than doubled since 2014, the multi-family industry saw a huge increase in demand. Single-family rentals were also in high demand, a boon for residential real estate investors.
Uptick in Home Sales: The housing market continued to see consistent gains throughout 2015, coinciding with household formations. In fact, existing home sales reached levels not seen since February of 2007.
While 2015 saw significant gains, many are predicting an even better housing market in 2016 despite a possible hike in rates and home prices. We'll toast to that!