Boomers won’t part with their homes, and that’s a problem for young families | CNN Business
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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.

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.

  • CoreOffset@lemm.eeEnglish
    0·
    1 year ago

    Smaller homes cost more or have HOA fees they can’t make work. Most all options have taxes they also can’t make work.

    It’s pretty insane that America has virtually no supply of inexpensive small homes. It’s all about the 2500+ sq-ft behemoths that cost $400,000+.

    Even though it’s a “worse” deal per sqft I think the market for sub $200,000 homes in the 500-750 sq-ft range would be absolutely booming if it existed.

    • FuglyDuck@lemmy.worldEnglish
      0·
      1 year ago

      I know a real estate developer type. (kinda a moron, actually, but he’s got a lot of experience in building expensive places to live.)

      A comment he made to me once was “Nobody builds low-income housing. a mid-rise luxury condo will only cost a bit more to build than low income apartments, but you make a shitload more”

      yeah, he was also kind of an asshole.

      • CoreOffset@lemm.eeEnglish
        0·
        1 year ago

        A comment he made to me once was “Nobody builds low-income housing. a mid-rise luxury condo will only cost a bit more to build than low income apartments, but you make a shitload more”

        Yeah, I completely believe it.

        Space-efficient middle housing for the poor and lower middle-class is not something we can rely on private companies to do in America. It’s something that is going to have to take government intervention.

        The apartment complex I was in took up as much land as around 5-7 average sized new construction homes yet it housed 42 46(I actually remember two of the buildings having 8 apartments each) apartments. It was also in a part of the country where a car was basically required. There was space for every apartment to have at least 1 car and have space to spare. Realistically probably about 1.5 cars per apartment could fit parked in the complex.

        • vividspecter@lemm.ee
          0·
          1 year ago

          There was space for every apartment to have at least 1 car and have space to spare. Realistically probably about 1.5 cars per apartment could fit parked in the complex.

          Parking minimums are utter madness, and a big part of the issue in the US. Although I understand that in some states/cities where this isn’t required, developers still overbuild the parking just out of the assumption that buyers/renters will prefer it.