Three major drives of home prices seem to support current and rising home price levels.
- Jobs: The U.S. continues to add jobs. Real estate and jobs vary together. A growing economy helps home sales.
- Households: Home sales were slightly under their year 2000 level in 2014, but the United States added an additional 17 million households over the intervening time period. As the millennials mature their demand for apartments is expected to decline as they move into homes.
- Housing Supply: The country needs to add 1.5 million housing units a year to accommodate population growth and housing demolitions. However, housing additions have recently been under 1 million a year: there are fewer available homes, which is a positive for home prices.