The housing market is expected to keep going strong for another 5 to 10 years.

Iman Brivanlou is the managing director for high-income equities at TCW Global, an asset manager based in Los Angeles that manages about $225 billion, mainly for institutional clients. He is also the portfolio manager of the TCW Global Real Estate Fund. In an interview with MarketWatch, Brivanou said he expected U.S. household formation among millennials to pick up after it stalled during the years following the 2008 financial crisis. Brivanou expects housing to keep going strong for another 5 to 10 years, as long as interest rates remain relatively low. Also, there is another reason for his prediction. There was a “lost decade of formation,” he said, as some millennials “preferred to live near where the action was,” he said. But some investors expected household formation to rise as millennials got older and wanted families, bringing about “the age-old desire of a larger home and a nice school district — things you find in the suburbs,” he added. “Now, accelerated by Covid, we see the latter interpretation vindicated,” Brivanou said.

Source: Rise and Shred