Life stages, including cohabitation or kids leaving the house, can trigger different housing choices:
Unmarried. Singles are more likely to rent and live in locations that are closer to entertainment and employment, which is why these areas are more in demand today than usual.
Togetherness. Cohabitation has been on the rise in recent decades, but homeownership rates for these couples are much lower than rates for their married counterparts.
Marriage. Marriage often increases the desire to own a home; many location and housing choices depend on income and nearby family.
Children. The addition of little ones makes owning a home feel like a necessity for many, given the desire for yards, good schools and social circles for the kids.
Children moving out. An empty nest often results in lifestyle changes, including different home-size preferences, social circles and floor-plan needs. Locational preferences also begin to shift.
The first two stages suggest a decrease in homeownership, the next two based around marriage and kids involve the more traditional American Dream, and the last seems to revert to the first two when more options are available. Are we headed toward a housing market where owning a home is primarily about kids? This has always been a key factor in moving to and living in the suburbs, which is closely linked to homeownership.
The flip side of this is to ask how real estate agents and builders will respond to these life stages. Can they afford to target each stage with specialized housing? Are there ways to have more flexible housing that can transition as the lifecourse changes?