There has been a great amount written on
millennials and their impact on the housing market. However, the headlines
often contradict each other. Some claim this generation is becoming the
largest share of first-time home buyers, while others claim millennials don’t
want to own a home, blaming them for the dip in homeownership rate.
While it is true that millennials have
achieved milestones like getting married, having kids, and buying homes later
in life than their parents and grandparents did, they are not solely to blame
for today’s housing market trends.
Mac’s Insight Report explored the impact of
the Silent and Baby Boomer Generations on the housing market.
If millennials are unable to find a home to
buy at a young age like their predecessors, then who is living in those
answer: Seniors born after
1931 are staying in their homes longer than previous generations, instead
choosing to “age
Mac found that,
trend accounts for about 1.6 million houses held back from the
market through 2018, representing about one year’s typical supply of new
construction, or more than half of the current shortfall of 2.5 million
housing units estimated in December’s Insight.
Americans prefer to age in place because they are satisfied with their
communities, their homes, and their quality of life.”
According to the National Association of Realtors, inventory
of homes for sale is currently at a 3.5-month supply, which means that
nationally we are in a seller’s market. A ‘normal’ housing market requires
6-7 months inventory, a level we have not achieved since August 2012.
most important fundamental in today’s housing market is the lack of houses
for sale. This shortage has been identified as an important barrier to young
adults buying their first homes.”
If you are one of the many seniors who
desires to retire in the same area you’ve always lived, you’re not alone.
Will your current house fit your needs throughout retirement? If you have any
questions about demand for your house, let’s get together to discuss the
opportunities available today!