With rent in large cities increasing, many millennials have turned to homeownership in the suburbs. At the same time, many younger millennials are also moving into the cities to join the workforce.
Over in Australia, the government's latest budget is committed to mitigate the impact of COVID-19 disruption in the economy and bolster the real estate market. The allocation of infrastructure spending is also the biggest since 2008 which is expected to boost both residential and commercial real estate by 2040.
What caught our eyes this week?
Housing and the Future of Real estate Demand
Amidst all the trouble the economy is experiencing, one bright spot continues to stand out: the housing market. This contrasts significantly with the previous recession when housing not only struggled, but also directly contributed to the downturn in the economy.
U.S. Housing Market Zooms into October
The slight increase in total listings comes as the average asking price remained “stubbornly high” in the week ending October 3, close to the peak of $350,000 recorded during the summer, according to the report from realtor.com. Home prices were 12.9% higher than a year ago, marking the highest annual growth the listing website has recorded since 2017.
Construction in UK Shows Surprise Acceleration in September
Britain's construction industry unexpectedly picked up speed in September, helped by a post-lockdown bounce in the housing market, a survey showed on Tuesday. The IHS Markit/CIPS UK Construction Purchasing Managers' Index (PMI) accelerated to 56.8 from 54.6 in August - above all forecasts in a Reuters poll of economists, which had pointed to a slight slowing.
Read also: Investing in the UK Real Estate Market
Budget Set to Provide Boost for Real Estate Sector
The Australian government’s latest budget is committing support and investment incentives to mitigate the economic impact of COVID-19 in moves that are likely to bolster the real estate sector. The announcement promised additional infrastructure investment and the expansion of a scheme that allows first-time home buyers to enter the market with a deposit as low as 5 percent.
Australia to Expand First-Home Buyer Assistance to Lift Economy
Australia will provide 10,000 extra places in a programme to help first-home buyers and encourage construction as the economy recovers from the impact of the COVID-19 pandemic.
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