Buying a family-sized home with three or more bedrooms used to be manageable for young people with children. But with home prices climbing faster than wages, mortgage rates still close to 23-year highs and a shortage of homes nationwide, many Millennials with kids can’t afford it. And Gen Z adults with kids? Even harder.
Meanwhile, Baby Boomers are staying in their larger homes for longer, preferring to age in place and stay active in a neighborhood that’s familiar to them. And even if they sold, where would they go? There is a shortage of smaller homes in those neighborhoods.
As a result, empty-nest Baby Boomers own 28% of large homes — and Milliennials with kids own just 14%, according to a Redfin analysis released Tuesday. Gen Z families own just 0.3% of homes with three bedrooms or more.
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Investment companies does make it worse, but they wouldn’t be able to cause a crisis if homes were built in such volumes that they can’t be investments. They’re buying expecting value to go up. Build enough and that can’t happen.
Right, we had the same issue before investment companies got big, and before airBnB. They just made it worse and the jump in interest rates made houses suddenly even less affordable
As someone who does have a house, I wanted to start pre-paying my mortgage so that’s not hanging over my head so long. However with interest rates as low as they are, I’m much better off even just dropping but I to a savings account …. Anyhow, my point is that even if I wanted to sell, such as to downsize, that’s a bad deal given interest rates