••• millennials research
Millennials will drive home-buying surge
Home-sales information site Zillow predicts a big year for home buyers in 2015, with more Millennials entering the market amid rising rents. Among Zillow’s predictions for 2015: U.S. rents will outpace home values by the end of the year; builders will begin constructing more lower-priced homes; Millennials will overtake Generation X as the largest group of home buyers; and home buyers will have more negotiating power in 2015.
First-time home buyers will be a critical part of the housing market this year and certain markets will have more favorable conditions than others for buyers looking for that perfect entry-level home. Markets most favorable to first-time buyers are those with strong income growth among 23-34-year-olds; significant growth in the number of entry-level homes on the market; and home prices that won’t take a big chunk out of buyers’ paychecks. Zillow predicts the best markets for first-time buyers in 2015 will be: Pittsburgh, Hartford, Conn.; Chicago, Las Vegas and Atlanta.
“Roughly 42 percent of Millennials say they want to buy a home in the next one to five years, compared to just 31 percent of Generation X, and by the end of 2015 Millennials will become the largest home-buying age group,” says Stan Humphries, Zillow’s chief economist. “The lack of home-buying activity from Millennials thus far is decidedly not because this generation isn’t interested in homeownership but instead because younger Americans have been delaying getting married and having children, two key drivers in the decision to buy that first home. As this generation matures, they will become a home-buying force to be reckoned with.”
••• employment research
Job seekers will be in control in 2015
Hiring managers anticipate adding more professionals at a record level in the first half of 2015, according to the semi-annual national survey from Dice Holdings Inc., a provider of specialized Web sites for professional communities. Sixty-percent of hiring managers expect an uptick in hiring in the year ahead, which is four points higher than the mid-year survey and five more than November 2013.
While hiring is expected to be on the upswing in the six months ahead, filling roles is a challenge for companies. Four in 10 (42 percent) hiring managers note the time to fill open positions has lengthened compared to last year, citing the inability to find qualified professionals as the main culprit. That compares to 39 percent who said this in June 2014.
Once companies find the desired candidate, it’s not always a mutual attraction, further proof that today is a candidate’s market. More candidates than ever before are rejecting offers, with 29 percent of hiring managers seeing rebuffs, compared to 26 percent in June 2014 and November 2013.
On average, candidates are asking for more money as compared to six months ago, according to 52 percent of hiring managers. Roughly half (49 percent) of recruiters anticipate higher salaries for new hires compared to last year.