Married couples are a shrinking share of the American households. Several trends have contributed to this shift, including higher labor force participation rates for women, delayed marriage, high divorce rates, low remarriage rates, and greater acceptance of unmarried partners living together. The resulting growth in unmarried partner, single parent, and single person households has increased the share of adults in all age groups heading independent households (Joint Center for Housing Studies of Harvard University: The State of the Nation’s Housing 2008). This change has significantly impacted the type of purchasers currently seeking housing on the market.
With higher rates of immigration and natural population increases (excess of birth over deaths), minorities contributed over 60 percent of household growth in 2000-2006. Minorities now account for 29 percent of all households, up from 17 percent in 1980 and 25 percent in 2000. If immigration continues at its current pace, the minority share is likely to reach about 35 percent by 2020, with Hispanic household leading the gain (Joint Center for Housing Studies of Harvard University: The State of the Nation’s Housing 2008). This growth trend will increase the demand for affordable housing opportunities in neighborhoods with concentrations of these populations.
Infinite Horizons, LLC believes it has two markets to focus on, with the primary market being minority first-time low- to moderate-income households looking to purchase a home at the most affordable price. These households are concerned with monthly payment and purchase price, and they are also looking to get incentives such as possible owner’s equity upon purchase. These groups, due to their income ranges, are also eligible for other subsidies and down payment assistance. Infinite Horizons, LLC is planning to target its marketing efforts to attract these groups of potential purchasers.
The secondary group consists of purchasers that cannot afford to purchase a home due to previous credit problems, lack of financing etc. These low- to moderate-income renters cannot afford market rate apartments. Rehabilitated foreclosed rental properties provide an affordable rental option for this population.