Baby boomers could be to blame for the US housing shortage

Business Insider | 5/11/2015 | First American Financial Corporation
eymira (Posted by) Level 3
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Millennial demand for homes is rising.

The number of baby boomers increased more than 30% in the last 30 years to more tha 75 million.

% - Baby - Boomers - Homes

85% of surveyed baby boomers said they don't plan to sell their homes.

Baby boomers - those born between 1946 and 1964 - have steered economic trends for decades and have the highest rate of homeownership in the country, approximately 80 percent. Now, as the oldest members of the generation edge into their 70s, they are deciding to stay in their homes. According to a Realtor.com housing shortage survey, boomers have the least interest in selling their home. Approximately 85 percent of baby boomers surveyed indicated they are not planning to sell their home in the next year. The main reason, according to the survey, is that their current home meets the needs of their family.

Place - Concept - Housing - Market - Housing

"Aging in place" is not a foreign concept to the housing market. However, the housing market has never experienced an increase in the population of 55 to 74 year olds of this magnitude. In the last 30 years, this population increased more than 30 percent. This may pose an issue for housing affordability as a tight housing market continues to get tighter, driving up prices.

"With baby boomers living longer and staying in their homes, and the housing market facing a housing shortage, the need for new construction is more important than ever."

Demand - Housing - Millennials - Housing - Market

It's no secret that millennial demand for housing continues to rise. There were 83.1 million millennials born between 1982 and 2000, and many are now looking to enter the housing market. There are 75.4 million baby boomers, and many indicate they have no intention of selling their homes. So, when it comes to housing, millennials would benefit from boomers selling their homes and adding more supply to the market, but that appears...
(Excerpt) Read more at: Business Insider
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