California sees bright future for housing market

Experts from the University of Southern California Lusk Center for Real Estate predict population growth and demographic shifts will improve the region's housing market over the next 10 years.

USC experts anticipate the maturation of a diverse, well-educated Generation Y population will transform the market. Stan Ross, Lusk Center Chairman of the Board, believes the younger, multicultural generations will learn from their parents' and grandparents' mistakes.

"These kids are concerned," Ross said. "They have watched the stock market, financial markets and economy wipe out their parents' retirement plans. As a result, they will choose lower-risk strategies."

According to the center, 60 percent of Generation Y have attended or are attending college, and 12 percent of U.S. residents are foreign born. In addition, 33 percent of all PhDs and 57 percent of all post-doctorates in science and engineering were awarded by U.S. universities to foreign students.

"The U.S. creates the best innovators, creators and entrepreneurs in the world," Ross said. "Furthermore, immigrants were responsible for 25 percent of America's high-tech start-up companies between 1995 and 2005 and 25 percent of America's international patents."

The San Francisco Bay Area housing market is starting to experience the anticipated recovery already. A report from Better Homes and Gardens Mason-McDuffie Real Estate found single-family home sales rose 33 percent due to low home prices not seen since 2003.  

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