Wyoming Housing Outlook for 2019
Cheyenne Outlook Favorable
The housing market in Cheyenne has a strong outlook both in the near and long term. Studies have shown that there is a shortage of stock of middle-income single family housing. Existing stock is older, built in mid-20th century, and amenities that families seek are lacking or expensive to upgrade to. This presents a strong opportunity for housing stock growth and investment.
Employment, business growth, and investments in community amenities in Cheyenne flash signals of economic stability and strength. This bodes well for some housing price appreciation tends continuing. All in all, the outlook for Cheyenne’s housing market in 2019 through 2025 is promising.
The Macro Perspective
On the other hand, the national housing market is at a possible turning point. The Federal Reserve has been increasing interest rates in response to national economic growth spurred forward by tax rate reductions in 2018 and emerging signs of moderate inflation. Mortgage rates have also increased as a result. The U.S.’s economic growth prospects, however, has been facing enormous headwinds due to increasing uncertainty and downside risks from without – such as Brexit – and from within – such as the federal government’s partial shutdown.
Layered on top of these economic uncertainties are demographic changes. A generational shift in house-owning versus house-renting is an emerging trend to watch as Millennials and Gen Z enter the job market and have families. Much as Depression-era households demonstrated more financial conservatism, these emerging generations have shown that they generally prefer to rent even after establishing families. Those that do look to own are looking for community amenities nearby – things like great retail options, excellent entertainment venues, community resources like green space and connected downtowns.
All of this adds up to a very uncertain outlook for the national housing market. There are both strong headwinds and tailwinds.
